KKR, Kreate complete purchase of South Korea's Cheongna Logistics Center

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Dec ‌30 : Global investment firm KKR and its affiliated Korean asset manager, Kreate Asset Management, said on Tuesday they have completed the purchase of Cheongna Logistics Center, which they say is South Korea's largest single-asset logistics deal. 

The companies did not disclose the financial terms of the transaction.

One person with knowledge ‌of the matter said the deal would value ‌the Incheon-based logistics asset at slightly more than 1 trillion won ($696 million), including debt. The source could not be named as the information was confidential.

Brookfield Asset Management, which sold the logistics centre to the KKR-led consortium, did not immediately respond to a Reuters request for comment.

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The ‍4.6-million-square-foot facility, completed in 2022, is fully leased and strategically located within the Greater Seoul metropolitan area, KKR said. 

The acquisition was carried out through funds managed by KKR and Kreate, with the latter taking over management ​and operations of the ‌property, the New York-headquartered firm said in the release.

KKR won a bidding process for the asset, according to local media.

The ​investment was made primarily through KKR's Asia real estate strategy and adds ⁠to its growing footprint in ‌South Korea.

Previous investments include Incheon Metro Logistics, a large-scale warehouse development ​in Incheon, and Hwaseong Jegi Logistics Centre, a major facility in a key logistics hub.

KKR has also been active ‍in logistics across Asia, with investments in LOGISTEED, a leading third-party logistics ⁠provider in Japan, and Reliance Logistics Group in India.

Source: Reuters

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