Global private equity fund (PEF) manager KKR has acquired a large logistics center in Incheon.
KKR said on the 30th that it completed the acquisition of the "Cheongna Logistics Center" in Cheongna, Incheon, with its Korea affiliate, Create Asset Management.
The Cheongna Logistics Center is considered an extra-large logistics center asset with a total floor area of about 430,000 square meters (about 130,000 pyeong). Comprising both ambient- and cold-storage facilities, Coupang leases about 80% of the entire site.
Earlier, Brookfield Asset Management was reported to have acquired the logistics center from KP Logistics PFV in 2023 for a total of 800 billion won and resold it for about 1 trillion won.
KKR made the investment based on its Asia real estate strategy. It follows its previous real estate investments in Korea, including the Incheon Metro Logistics Center, Hwaseong Jegiri Logistics Center, Gangnam Centerfield, and Namsan Green Building.
IGIS Asset Management, a real estate asset manager, also emerged as a potential buyer, but KKR was said to have increased its bargaining power by directly securing tenants for some vacant space. The property is now 100% leased.
KKR noted it was "the largest single logistics asset transaction in the country," adding that "Create Asset Management will be responsible for the management and operation of the Cheongna Logistics Center."