Blackstone Takes Majority Stake in 334,000-Square-Meter ESR Logistics Development Near Seoul

Funds managed by Blackstone Real Estate Partners have acquired a majority interest in Sanha Logistics Park II, a 334,000-square-meter dry-storage logistics development under construction in South Korea's Seoul Metropolitan Area, the companies announced Sept. 10. ESR will retain an ownership stake and continue to serve as development manager and asset manager through ESR Kendall Square, its South Korean platform.

The transaction was structured as a primary share issuance. The development is expected to reach completion in 2028.

Deal Details: A Development-Stage Capital Placement

Sanha Logistics Park II is positioned along the Gyeongbu Expressway, South Korea's main highway corridor linking Seoul and Busan, within an established distribution and manufacturing hub that serves major Korean conglomerates. The facility is designed with significant power capacity to support advanced warehouse automation and the supply chain requirements of third-party logistics providers, e-commerce platforms, and retailers.

The investment represents a development-stage capital placement rather than a stabilized asset acquisition. Blackstone is backing the project ahead of its 2028 delivery, positioning for a leasing environment that market data suggests may tighten as new supply slows.

Chris Kim, Head of Blackstone Real Estate – Korea, said the deal reflects the firm's broader conviction in the sector. "This investment deepens Blackstone's presence in Korea and reinforces logistics as one of our highest conviction real estate themes globally," Kim said. "Korea is a dynamic logistics market, underpinned by its leadership in e-commerce, advanced manufacturing, and AI-related industries. We're pleased to partner with ESR to deliver high-quality, modern Grade A logistics infrastructure that addresses the evolving needs of our customers and contributes to Korea's next phase of economic growth."

Sunwoo Thomas Nam, CEO of ESR Kendall Square, said the partnership combines complementary strengths. "This investment reflects our shared confidence in the long-term fundamentals of South Korea's logistics sector," Nam said. "By combining Blackstone's global platform and expertise with our local development and management experience and capabilities, we look forward to delivering a premier asset that meets evolving customer needs."

Blackstone's Expanding Korea Footprint

The Sanha Logistics Park II investment marks Blackstone's third logistics transaction in South Korea and its fifth investment announcement across businesses in the country over the past 14 months. The firm describes South Korea as a long-term market with significant real estate and private equity activity.

Blackstone reported approximately $1.35 trillion in assets under management as of the second quarter of 2026, with its real estate segment generating $745 million in distributable earnings in a recent earnings period. The firm has been directing capital toward logistics and related sectors as part of its broader real estate strategy.

Seoul Logistics Market Context

The investment comes as Seoul-area logistics fundamentals show signs of improvement following a period of elevated vacancy driven by a wave of new supply. Grade A logistics vacancy across the Seoul Metropolitan Area fell to 14.6% in the first half of 2026, down from the end of 2025. Dry-storage vacancy stood at 8.7% during the same period, while cold-storage vacancy remained elevated at 33.0%, highlighting a divergence between the two segments.

Seoul logistics vacancy was recorded at 15.5% in the second quarter of 2026, with logistics cap rates in the Seoul Metropolitan Area averaging approximately 5.2% to 5.3% for Grade A assets. Net effective rents in the Seoul Central Area were approximately KRW 32,900 per square meter, up 0.7% quarter-over-quarter and 2.8% year-over-year.

The tightening dry-storage market and slowing supply pipeline support the investment thesis for a modern, automation-ready facility delivering in 2028. Sanha Logistics Park II's emphasis on power capacity and automation readiness aligns with demand patterns driven by e-commerce growth, advanced manufacturing, and evolving 3PL requirements in the Korean market.

About the Companies

Blackstone is an alternative asset manager with more than $1.3 trillion in assets under management, with investment strategies spanning real estate, private equity, credit, infrastructure, life sciences, growth equity, secondaries, and hedge funds.

ESR is an Asia-Pacific real asset owner and manager focused on logistics real estate and data centers. The firm operates across Australia and New Zealand, Japan, South Korea, Greater China, Southeast Asia, India, and Europe through a fully integrated fund management and development platform. ESR Kendall Square serves as its South Korean platform.

Sources

• Blackstone Press Release – Sept. 10, 2026
• ESR Press Release – Sept. 10, 2026