KOREA (SOUTH) —Private equity firm Blackstone Real Estate Partners has secured a controlling interest in Sanha Logistics Park II, a major dry storage facility under construction in South Korea’s Seoul Metropolitan Area. The investment was completed via a primary share issuance, with real asset manager ESR retaining an equity stake. ESR Kendall Square, ESR's domestic platform, will oversee ongoing development and asset management for the project, which is scheduled for completion in 2028.
Spanning 334,000 square meters, the modern Grade A facility is located along the Gyeongbu Expressway corridor, a core transit artery connecting Seoul and Busan. Designed with enhanced power capacity to support automated warehouse operations, the site targets third-party logistics firms, e-commerce groups, and retail chains. The transaction represents Blackstone's third logistics acquisition in South Korea and its fifth major investment announcement in the country over the past 14 months.
Blackstone is a global alternative asset management firm overseeing more than $1.3 trillion in assets across real estate, private equity, credit, and infrastructure strategies. ESR is an Asia-Pacific real asset manager focused on logistics real estate and data centers with an integrated fund management and development platform.
This deal highlights sustained institutional demand for prime Asian logistics assets, driven by structural shifts in regional supply chains, automated fulfillment needs, and expanding digital commerce. For international investors, partnering with specialized local managers offers a route to mitigate execution risks in high-density markets like Greater Seoul, where supply constrained land and high grid power requirements create barriers to entry for advanced distribution centers.
