KKR Sets Korean Record with $695M Logistics Center Acquisition

SEOUL, South Korea – December 29, 2025 – Global investment giant KKR has finalized its acquisition of the Cheongna Logistics Center in a transaction valued at approximately 1 trillion Korean Won (about $695 million), marking the largest single-asset logistics deal in South Korea's history. The move, made in partnership with its affiliated Korean manager Kreate Asset Management, underscores a powerful investment trend driven by the nation's explosive e-commerce growth and the surging demand for state-of-the-art supply chain infrastructure.

The acquisition sees KKR take control of a premier, fully-occupied facility in a market where high-quality logistics space is becoming an increasingly prized commodity. This landmark deal not only highlights the strategic importance of the Korean market but also signals deep investor confidence in the infrastructure that powers its digital economy.

A Landmark Deal in a Red-Hot Market

The transaction, in which KKR and Kreate acquired the asset from Brookfield Asset Management, sets a new benchmark for the Korean real estate sector. While official financial terms were not disclosed in the initial announcement, industry sources confirm the deal's valuation at just over 1 trillion KRW. This figure is particularly notable when considering that Brookfield had acquired the asset in 2023 for a reported sum between 659 billion and 800 billion KRW, realizing a significant gain in under three years and illustrating the rapid appreciation of prime logistics properties.

The deal arrives at a pivotal moment for South Korea's logistics market. While the total transaction volume remains robust, a structural shift is underway. A recent oversupply in certain segments, particularly in temperature-controlled warehousing, has led to a market-wide 'flight to quality.' Investors are increasingly focusing on modern, strategically located, and fully leased 'hard assets' like the Cheongna facility. With new logistics supply in the Seoul Metropolitan Area down 34% year-over-year in 2024, existing top-tier centers have become exceptionally attractive, commanding premium valuations and ensuring stable returns.

The Engine of E-Commerce: Cheongna's Strategic Power

At the heart of the record-breaking deal is the Cheongna Logistics Center itself—a colossal, 4.6-million-square-foot facility that represents the pinnacle of modern logistics design. Completed in 2022, the 10-storey warehouse is not just vast but also technologically advanced and sustainable, having achieved a LEED Gold certification for its green building practices.

Crucially, the center is 100% occupied, a testament to its quality and location. E-commerce titan Coupang, a dominant force in South Korea's online retail space, is the anchor tenant, leasing approximately 80% of the facility. Convenience store chain Emart24 is another key tenant, highlighting the center's critical role in both digital fulfillment and conventional retail supply chains. The full occupancy significantly de-risks the investment and provides immediate, stable cash flow.

The facility's strategic location within the Incheon Free Economic Zone is a core component of its value. Situated just 40 kilometers west of Seoul, it offers unparalleled connectivity to the Greater Seoul metropolitan area's massive consumer base. With direct access to major transportation arteries like the Incheon International Airport Expressway and proximity to Incheon Port and Incheon International Airport—one of Asia's busiest cargo hubs—the center is perfectly positioned to facilitate the rapid movement of goods, a critical requirement in a market where consumers demand same-day or next-day delivery.

Fueling South Korea's Digital Economy

This acquisition is a direct reflection of South Korea's status as a global e-commerce powerhouse. As the third-largest e-commerce market in the Asia-Pacific region, its digital economy is expanding at a blistering pace. Market projections forecast a compound annual growth rate (CAGR) of nearly 17% through 2035, driven by near-universal smartphone penetration and a highly tech-savvy consumer base that has embraced online shopping as the default.

This relentless growth in online retail, particularly in mobile commerce which accounts for over 60% of sales, has created an insatiable demand for sophisticated logistics and fulfillment operations. Modern warehouses are no longer just storage spaces; they are complex hubs of activity employing automation, robotics, and AI to manage immense order volumes and meet tightening delivery windows. The Cheongna Logistics Center, with its scale and modern capabilities, is precisely the type of asset needed to support this rapidly evolving economic landscape.

KKR's Expanding Asia Real Estate Play

For KKR, the Cheongna acquisition is a cornerstone of a broader, deliberate strategy to build a formidable real estate portfolio across Asia, with a sharp focus on the logistics sector. The investment was made predominantly through its Asia real estate strategy, which is currently raising its second dedicated fund for the region.

This is not the firm's first major foray into Korean logistics. Its portfolio already includes the Incheon Metro Logistics and Hwaseong Jegi Logistics Centre. Beyond logistics, KKR has also invested in prime Seoul office properties like Centerfield in the Gangnam Business District and the Namsan Green Building. This pattern of investment demonstrates a long-term commitment to South Korea's key commercial real estate sectors.

The partnership with Kreate Asset Management, a Korean real estate investment firm established by KKR in 2024, is a key element of this strategy. Kreate will handle the day-to-day management and operation of the Cheongna facility, combining local operational expertise with KKR's global investment acumen and value-creation capabilities.

David Cheong, KKR's Head of Acquisitions for Asia Real Estate, noted the strategic fit. “As distribution networks become more complex and modern logistics play a growing role in supporting Korea’s modern economy, we are delighted to invest in Cheongna Logistics Center, a leading logistics facility with sophisticated capabilities in a strategic location,” he said. This investment deepens KKR's regional logistics footprint, which also includes major assets and partnerships in Japan, India, and Australia, solidifying its position as a dominant player in the infrastructure powering Asia's growth.