Global private equity giant KKR is ramping up its logistics footprint in South Korea, with a new acquisition underway and several high-profile deals already in the pipeline. The firm is finalizing the purchase of a logistics center in HaeChang-ri, Hwaseong, while simultaneously advancing multiple investments that underscore its strong conviction in the country’s logistics sector.

Earlier this year, KKR and Create Asset Management acquired two logistics centers in Anseong for approximately KRW 121 billion (USD 88 million). In March, KKR, partnering with Pacific Asset Management, was selected as the preferred bidder for the FILA Logistics Center in Icheon, being sold by ESR Kendall Square REIT—a deal now approaching closing.

In addition, KKR has signed an MOU to acquire a major logistics hub in Jegi-ri, Hwaseong, from Invesco, with cold storage space leased to GS Retail and ambient space to Samsung Electronics.

On July 4, the commercial real estate industry confirmed that KKR, together with Gravity Asset Management, has signed a memorandum of understanding (MOU) for the acquisition of a 54,900-square-meter warehouse located in HaeChang-ri, Paltan-myeon, Hwaseong City, Gyeonggi Province.

The deal is expected to close soon, with a price slightly above KRW 100 billion (USD 73 million).

The warehouse was developed by Dallant Asset Real Estate Development through Dallant Partners No. 1 PFV and completed in November 2023. The facility is a mixed-use logistics hub with 70% ambient and 30% cold storage capacity.

Notably, Hansol Logis U has signed a two-year lease for floors 1, 2, and 4 (ambient) starting November 2024, while iBot Logistics entered into a five-year master lease for the cold storage basement in May 2024.

Initially, Dallant Asset had secured a forward purchase agreement with a domestic asset manager, but the contract was terminated in 2024. With the project financing (PF) loan of KRW 83.1 billion maturing in March 2025, lenders extended the deadline to September to facilitate the sale.

An industry insider noted, “The HaeChang-ri logistics center has a prime location just five minutes from Balan IC, providing excellent connectivity to the Seohaean Expressway and Pyeongtaek–Jecheon Expressway. Its efficient design and build quality make it a highly competitive asset.”

KKR’s recent logistics spree illustrates its confidence in South Korea’s long-term e-commerce and last-mile delivery growth. The firm’s use of diversified capital sources, including funds from Global Atlantic Financial Group (its insurance affiliate), provides a steady stream of capital for large-scale logistics plays.