NewsGlobalKKR and Kreate Complete Acquisition of Cheongna Logistics Center in South Korea's Largest Single-Asset Logistics DealKKR and Kreate Complete Acquisition of Cheongna Logistics Center in South Korea's Largest Single-Asset Logistics Deal
KKR and Kreate Asset Management have completed the acquisition of Cheongna Logistics Center from Brookfield Asset Management in South Korea's largest single-asset logistics deal, valued at over $696 million including debt. The 4.6-million-square-foot facility, completed in 2022, is fully leased and strategically located in the Greater Seoul metropolitan area. This acquisition expands KKR's South Korean real estate portfolio and aligns with the growing demand for modern logistics facilities supporting the country's e-commerce-driven economy.
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Global investment firm KKR and its affiliated Korean asset manager Kreate Asset Management announced the completion of their acquisition of Cheongna Logistics Center, marking South Korea's largest single-asset logistics deal. The transaction was finalized with Brookfield Asset Management as the seller, though neither party disclosed the official financial terms of the deal.
Deal Valuation and Structure
According to sources familiar with the matter, the acquisition values the Incheon-based logistics facility at slightly more than 1 trillion won, equivalent to approximately $696.00 million including debt. The deal was structured through funds managed by both KKR and Kreate, with Kreate taking responsibility for the ongoing management and operations of the property.
| Transaction Details: | Information |
|---|---|
| Asset: | Cheongna Logistics Center |
| Location: | Incheon, South Korea |
| Estimated Value: | >1 trillion won ($696 million) |
| Buyer: | KKR and Kreate Asset Management |
| Seller: | Brookfield Asset Management |
Facility Specifications and Strategic Position
The Cheongna Logistics Center represents a significant modern logistics asset within South Korea's infrastructure landscape. Completed in 2022, the facility spans 4.6 million square feet and operates at full occupancy. Its strategic location within the Greater Seoul metropolitan area positions it advantageously for serving the region's logistics and distribution needs.
| Facility Overview: | Details |
|---|---|
| Total Area: | 4.6 million square feet |
| Completion Year: | 2022 |
| Occupancy Status: | Fully leased |
| Strategic Location: | Greater Seoul metropolitan area |
Market Context and Investment Rationale
KKR emphasized the growing importance of modern logistics facilities in supporting South Korea's evolving economy. The firm highlighted the increasing demand for large, high-specification warehouses capable of supporting sophisticated logistics and fulfillment operations, particularly driven by the expansion of e-commerce activities in the region.
The acquisition was completed through a competitive bidding process, with KKR emerging as the successful bidder according to local media reports. The investment was executed primarily through KKR's Asia real estate strategy, demonstrating the firm's continued commitment to expanding its presence in the South Korean market.
KKR's Expanding Asian Logistics Portfolio
This acquisition adds to KKR's growing real estate footprint in South Korea, building upon previous strategic investments in the logistics sector. The firm's existing South Korean logistics portfolio includes Incheon Metro Logistics, described as a large-scale warehouse development in Incheon, and Hwaseong Jegi Logistics Centre, a major facility located in a key logistics hub.
Beyond South Korea, KKR has maintained an active investment approach in logistics across Asia. The firm's regional logistics investments encompass LOGISTEED, a leading third-party logistics provider in Japan, and Reliance Logistics Group in India, demonstrating a comprehensive regional strategy in the logistics and supply chain sector.
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