Global Market: Blackstone acquires majority stake in South Korea logistics park

Blackstone has acquired a majority interest in Sanha Logistics Park II, a dry-storage logistics development in South Korea, through a primary share issuance, as the global investment firm seeks to expand its presence in the East Asian market, the companies said on Thursday, Reuters reported.

Singapore-based real estate manager ESR will remain an investor in the project and continue to act as development manager and asset manager through its South Korean platform, ESR Kendall Square.

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Sanha Logistics Park II spans 334,000 square metres and is currently under construction, with completion expected in 2028. The total development cost is estimated at about 600 billion Korean won ($448.30 million), ESR told Reuters.

Blackstone did not disclose the value of the stake it acquired.

The logistics park is located along the Gyeongbu Expressway, South Korea's main highway corridor linking Seoul and Busan. The companies said the project is designed to accommodate warehouse automation and other changing requirements across supply chains.

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The investment adds to Blackstone's exposure to South Korea's logistics real estate sector, as demand for modern warehousing infrastructure continues to evolve alongside supply-chain and e-commerce requirements, Reuters said in the report.

Blackstone has been expanding its real estate footprint in Asia, with logistics assets forming a key part of its global investment strategy. The Sanha Logistics Park II transaction further strengthens its presence in South Korea while retaining ESR as a development and asset-management partner.