KKR and Kreate Asset Management have confirmed the successful purchase of the Cheongna Logistics Center. Located in the port city of Incheon, the facility is a high-specification site that finished construction in 2022. The deal was financed through funds managed by KKR and a specific Korean fund managed by Kreate. Spanning 4.6 million square feet, the centre is now the largest individual logistics asset ever traded in South Korea. Its position is considered strategic due to its proximity to major transport links serving the Greater Seoul region.

The acquisition comes at a time when South Korea’s economy is increasingly driven by e-commerce. This shift has created a high demand for large warehouses that can handle complex fulfilment operations. Because of this sustained interest from tenants, the Cheongna Logistics Center is currently operating at full capacity. Kreate will take over the daily management and operation of the site. Meanwhile, KKR will provide guidance on value creation strategies to ensure the asset maintains its high standards.

David Cheong, Head of Acquisitions of Asia Real Estate at KKR, stated: “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. We look forward to supporting its continued growth by leveraging our global real estate and logistics expertise alongside Kreate’s local capabilities, while further expanding our exposure in the logistics sector and through deepening our collaboration with Kreate.”

This purchase was primarily made through the Asia real estate strategy of KKR. It adds to a growing list of South Korean assets held by the firm, which includes Centerfield in Seoul and the Hwaseong Jegi Logistics Centre. Globally, KKR has been active in this sector with recent investments in Japan’s LOGISTEED and India’s Reliance Logistics Group. The firm intends to use its international experience to further develop its footprint in the regional logistics market.