Blackstone invests in major logistics center with ESR
A computer-generated image shows Sanha Logistics Park II, a 334,000-square-meter logistics center in Anseong, Gyeonggi Province. Courtesy of Blackstone
Blackstone, a New York-based asset management firm, has teamed up with ESR to invest in a major logistics center development project in the Seoul metropolitan area, the company said Thursday.
The move highlights Blackstone’s growing focus on logistics real estate as a key investment market in Korea.
The firm said funds managed by Blackstone Real Estate Partners have invested in a majority interest in Sanha Logistics Park II, a prime dry-storage logistics development in Anseong, Gyeonggi Province, through a primary share issuance.
ESR will retain its investment in the project while continuing to oversee its development and asset management through ESR Kendall Square, its local platform in Korea.
Construction is underway on Sanha Logistics Park II, which covers 334,000 square meters and is slated for completion in 2028.
The logistics facility is located along the Gyeongbu Expressway, a major transportation route linking Seoul and Busan, in a well-established industrial and distribution area home to operations of major Korean conglomerates.
The facility is being developed with significant power capacity to accommodate automated warehouse systems and meet the growing logistics needs of major third-party logistics operators, e-commerce companies and retailers.
“This investment deepens Blackstone’s presence in Korea and reinforces logistics as one of our highest-conviction real estate themes globally,” Chris Kim, head of Blackstone Real Estate Korea, said.
He said Korea is a dynamic logistics market, underpinned by its leadership in e-commerce, advanced manufacturing and artificial intelligence-related industries.
“We’re pleased to partner with ESR to deliver high-quality, modern logistics infrastructure that addresses the evolving needs of our customers and contributes to Korea’s next phase of economic growth,” he added.
ESR Kendall Square CEO Nam Sun-woo, also known as Sunwoo Thomas Nam, underscored that upon completion, Sanha Logistics Park II will be a landmark logistics asset in the Seoul metropolitan area, designed to support growing automation and increasingly sophisticated supply chain requirements.
“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,” he said.
Blackstone is a long-term investor in Korea, with the latest investment marking the firm’s third logistics investment and fifth investment announcement across businesses in the last 14 months.