ESR Sells $253M Korean Warehouse to NPS-Backed Fund
ESR Kendall Square sold the Pyeongtaek Logistics Park in South Korea to a Samsung SRA fund backed by the National Pension Service for $252.6 million
ESR Kendall Square has sold the Pyeongtaek Logistics Park for KRW 343 billion ($252.6 million). The buyer was a core fund managed by Samsung SRA Asset Management and anchored by South Korea's National Pension Service (NPS).
The transaction closed on September 1. The sale price equates to KRW 1.8 million per square metre of gross floor area. This deal transfers a major warehouse developed with capital from foreign pension giants Canada's CPPIB and the Netherlands' APG to a vehicle led by Korea's largest institutional investor.
An ESR representative told Mingtiandi that the sale reflects strong value creation from its asset management strategy. It also shows the market appeal of the property's fundamentals and specifications.
Asset Specifications
The Pyeongtaek Logistics Park is a 190,000 square metre facility on a 165,827 square metre site. It is located in the Poseung district of the Gyeonggi Free Economic Zone, about an hour's drive south of Seoul.
The all-ambient warehouse was fully pre-leased to e-commerce operator SSG.com in late 2021, before construction began. It features direct ramp access to each floor, wide truck yards, and high ceilings. According to ESR, it has Korea's largest single-floor warehouse area and a 10-megawatt power capacity. The complex lies three kilometres from Pyeongtaek Port, a key gateway for trade with China.
Pyeongtaek Market Context
Pyeongtaek has emerged as a major distribution hub serving the Seoul capital region and nearby industrial clusters. Logistics stock in the area grew more than 1.7 times in the three years through mid-2025. Cushman & Wakefield reported that third-party logistics firms and end-users absorbed much of this new space.
The ESR sale is part of a broader trend of institutional investment in Pyeongtaek. In late 2024, Warburg Pincus-backed Qube Industrial acquired a fully leased, 42,853 square metre warehouse there. Earlier, in 2020, KKR sold the 136,500 square metre BLK Pyeongtaek Logistics Center to Pebblestone Asset Management for Korean institutional investors. Stonepeak-backed Equalbase has also established a presence near the port with a 68,000 square metre facility.
Korean Logistics Market Outlook
The sale occurs as South Korea's logistics market begins to recover from a three-year surge in new supply. Fewer development starts, easing vacancy, and early signs of rental growth are improving the outlook for stabilised assets. Income-producing industrial property trades in Korea reached $6 billion in 2025, ranking the country fourth in Asia Pacific by volume.
Investment yields in Korea led the Asia Pacific region in the first quarter of this year. Research presented at Mingtiandi's Korea logistics forum in June provided further market metrics.
| Metric | Greater Seoul Q2 2025 Figure |
|---|---|
| Logistics Vacancy Rate | 15.5% |
| Quarterly Net Absorption | 164,000 sq m |
| Avg. Nominal Ambient Rent | $7.65 per sq m per month |
| Quarterly Rent Change | +0.6% |
| Annual Rent Change | +2.4% |
JLL reported the data, noting net absorption rose 42 percent from the prior quarter. Completions in the first half of the year fell to one-third of their year-earlier level.
Occupier demand continues, driven by a Korean e-commerce market that reached nearly $204 billion in 2025. Market leader Coupang posted 14 percent revenue growth. ESR Kendall Square REIT CEO Sanghwoi Bae told the forum that tenants now prioritise automation, modernisation, and consolidation over mere expansion.
Overseas capital remained a dominant force, accounting for over 60 percent of Korea's logistics investment market in 2025. Newmark Korea research head Judy Jang identified global players like KKR, GIC, Blackstone, and ESR as key drivers. They are building platforms, targeting repriced properties, and waiting for suitable core assets to acquire.
