A Korean consortium led by real estate fund manager Pebblestone Asset Management has acquired a major logistics facility from global investment firm KKR.

KKR and its partners acquired the site in 2017 to develop a state-of-the-art asset now known as the BLK Pyeongtaek Logistics Center.

It is located in Pyeongtaek Port, one of South Korea’s largest port facilities, in Gyeonggi province.

The transaction price was not disclosed.

The logistics centre, completed in early 2019, has a gross floor area of approximately 136,500sqm.

John Pattar, KKR’s partner and head of Asia-Pacific real estate, said rapid growth of e-commerce was transforming South Korea’s logistics sector.

Terry Hwang, CEO and managing partner of Pebblestone Asset Management Korea, said the acquisition was made on behalf of Korean institutional investors.

Pebblestone was incorporated in 2015 and today runs a series of private real estate investment trusts for institutional clients. It also has mandates with national and foreign pension funds, including Malaysia’s Employees Provident Fund (EPF).

KKR had more than US$1.4bn (€1.27bn) of equity committed to its pan-regional real estate strategy committed at the end of 2019. It made the Pyeongtaek investment on behalf of its Asian Fund II.

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