Blackstone, the world's largest alternative asset manager, has acquired a majority stake in a logistics development in Greater Seoul, which includes Incheon and Gyeonggi Province, in partnership with Singapore-based real estate manager ESR, seeking to capitalize on continued growth of South Korea's logistics market, the asset manager said Thursday.
Funds managed by Blackstone Real Estate Partners invested with a majority interest in Sanha Logistics Park II, a prime dry-storage logistics development, through a primary share issuance.
ESR will remain an investor and continue to serve as development manager and asset manager through ESR Kendall Square, its local platform.
Spanning 334,000 square meters, Sanha Logistics Park II is currently under construction and is expected to be completed in 2028. The development is strategically positioned along the Gyeongbu Expressway, Korea's busiest corridor connecting Seoul and Busan.
With ample power capacity, the facility is designed to support advanced warehouse automation and the changing logistics needs of major third-party logistics providers, e-commerce platforms and retailers, the asset manager explained.
"This investment deepens Blackstone's presence in Korea and reinforces logistics as one of our highest conviction real estate themes globally," said Chris Kim, head of Blackstone Real Estate–Korea.
"Korea is a dynamic logistics market, underpinned by its leadership in e-commerce, advanced manufacturing, and AI-related industries"
Sunwoo Thomas Nam, CEO of ESR Kendall Square, added, the investment reflects the shared confidence in the long-term fundamentals of Korea's logistics sector.
"By combining Blackstone's global platform and expertise with our local development and management experience and capabilities, we look forward to delivering a premier asset that meets evolving customer needs," Nam said.
The investment marks Blackstone's third logistics investment and fifth investment announcement across businesses in the last 14 months. The asset manager has focused its investments in Korea primarily on real estate and private equity.
silverstar@heraldcorp.com
