Expanded control in South Korea for Blackstone through the purchase of key logistics centers in Seoul.
Blackstone Expands Logistics Investments in Seoul
In a strategic move, Blackstone Real Estate Partners has recently acquired a prime last-mile logistics portfolio in the Seoul Metropolitan Area. The portfolio consists of two modern Grade A logistics centers in Gimpo and Namyangju, totaling approximately 1.3 million square feet.
This investment underscores Blackstone's commitment to the logistics sector in South Korea, a focus that has been evident in their recent acquisitions and transactions. The logistics sector is a significant area of interest for Blackstone in the region, with logistics being a high conviction investment theme in real estate globally and a specific focus in South Korea, particularly in the Seoul Metropolitan Area.
The logistics centers are situated in key markets of Greater Seoul and serve major e-commerce and logistics tenants. The current supply of last-mile logistics assets in the Seoul Metropolitan Area is extremely limited, with a vacancy rate hovering around the 4% range, making such assets highly attractive for investment.
This acquisition aligns with Blackstone's strategy to capitalize on limited supply and strong demand in Seoul’s logistics market, particularly in last-mile delivery infrastructure critical for e-commerce growth. The firm plans to leverage its global expertise, asset management capabilities, and local market insights to grow its logistics platform in the Seoul area for long-term success.
Blackstone's investments in South Korea are managed through QUBE Industrial Asset Management funds. Last year, Blackstone completed three key transactions, including an investment in a large logistics asset in Gimpo. The company's focus on logistics investments in South Korea is particularly evident in the Seoul Metropolitan Area.
Since establishing its Korea real estate team three years ago, Blackstone has actively expanded its presence with several transactions in logistics, office, and hotel sectors. The firm's strategy in the Korean real estate market continues to prioritize investments in prime assets in fast-growing sectors, such as logistics.
Chris Kim, Head of Blackstone Real Estate - Korea, has reaffirmed their commitment to investing in prime Korean assets. He emphasizes that they bring together global expertise, scale, asset management capabilities, and local insights to their investments. This approach is evident in their recent acquisitions and transactions, which demonstrate their ongoing commitment to prime Korean real estate assets in fast-growing sectors.
In addition to their logistics investments, Blackstone also purchased an office building in Gangnam for conversion into a Travelodge Asia hotel. This move further underscores their commitment to the Korean real estate market and their strategy of investing in prime assets in fast-growing sectors.
[1] Blackstone press release: [Link to press release] [2] Real Estate Korea: [Link to article] [3] Pulse News Korea: [Link to article]
- This acquisition by Blackstone Real Estate Partners in the logistics sector of South Korea, specifically in the Seoul Metropolitan Area, signifies their ongoing commitment to investing in prime assets within fast-growing sectors.
- The logistics sector is a high conviction investment theme for Blackstone, with their focus on it being particularly evident in their transactions and acquisitions in South Korea, including the recent purchase of two Grade A logistics centers.
