Canada Pension Plan Investment Board (CPPIB) is partnering with pan-Asian logistics specialist ESR and its Seoul-based subsidiary Kendall Square Asset Management to invest up to US$500m (€432m) in South Korean logistics.

Kendall Square will identify and manage grade-A facilities in key locations and demand from diverse tenants.

CPPIB said South Korea’s position as the most connected country in the world, and continuing embrace of e-commerce, provide an attractive opportunity.

An investment vehicle set up for the partnership will initially invest in a seed portfolio of six logistics facilities encompassing 270,000sqm, already managed by Kendall Square.

Additional core and value-added assets will then be sought.