Global investment firm Kohlberg Kravis Roberts (KKR) announced that Korean real estate asset manager Pebblestone Asset Management will acquire BLK Pyeongtaek Logistics Center from a KKR-led consortium.

BLK Pyeongtaek Logistics Center is a newly developed multi-tenant modern logistics facility located in Pyeongtaek Port, one of the largest ports in South Korea. The facility, which was completed by the consortium in early 2019, has a gross floor area of approximately 140 thousand square meters, making BLK Pyeongtaek Logistics Center one of the largest modern logistics assets in Pyeongtaek City as well as in the southern Gyeonggi province. Its tenants include a major e-commerce retailer and various third-party logistics companies. KKR made its investment from its Asian Fund 2.

John Pattar, Partner and Head of Asia Pacific Real Estate at KKR, said, “The rapid growth of e-commerce is transforming South Korea’s logistics sector, creating a growing demand for fully-integrated and technology-enabled warehousing facilities that can support greater volumes and faster delivery. We are proud of our work alongside our partners to complete the BLK Pyeongtaek Logistics Center, one of the country’s newest modern logistics facilities.”

“BLK Pyeongtaek Logistics Center is a one-of-a kind facility strategically located in a fast-growing coastal city with easy access to major transportation routes. The center’s design features, including its cutting-edge cold and dry warehousing facilities, also make it a compelling option for companies across many industries. We look forward to supporting all of BLK Pyeongtaek Logistics’ existing and future tenants as they bring their unique products and goods to the Korean market. This is an excellent win-win transaction for both parties of KKR’s successful sale and stable income for the buyer,” said Terry Hwang, CEO and Managing Partner of Pebblestone Asset Management Korea.

KKR takes a flexible approach to real estate investment in Asia Pacific across traditional value-add real estate opportunities, corporate and platform investments, and special situations. KKR pairs the capabilities of its local teams in Asia Pacific with the firm's industry and operational expertise to add value. KKR has committed more than 14 billion dollars of equity in its pan-regional real estate strategy, as of December 31, 2019.

The firm recently started to raise 12.5 billion dollars for its KKR Asian Fund 4 and it reportedly formed a fund worth 200 million dollars with South Korea’s Shinhan Financial Group.