Warburg Pincus-Wide Creek Asset JV picks up 2nd Korean logistics asset

US private equity firm Warburg Pincus LLC and South Korean real estate manager Wide Creek Asset Management Co. are building a logistics center for life sciences clients in the outskirts of Seoul.

A joint venture set up by the two companies recently acquired an 82,000-square-meter plot in Anseong, Gyeonggi Province. The site will house a five-story, 100,000-square-meter dry storage facility, with about 70% of the warehouse already pre-leased to life sciences tenants.

The site is close to the recently completed Sejong-Pocheon Expressway, providing easy access to the greater Seoul metropolitan region.

Among the key tenants is Yongma Logis Co., a subsidiary of Dong-A Socio Holdings Co., a major Korean healthcare conglomerate.

Yongma specializes in temperature-controlled transportation systems and cold chain logistics to ensure the safe distribution of pharmaceutical products.

Warburg Pincus plans to secure additional life sciences and healthcare companies to occupy the remaining space, reinforcing its strategy of establishing a dedicated life sciences logistics hub.

The Anseong logistics center will feature a large plate structure designed to enhance operational efficiency with expansive floor space. It has also been equipped to accommodate automated systems with a reliable power supply infrastructure, according to a Warburg Pincus official.

REAL ECONOMY PROPERTY SECTOR

Through its Warburg Pincus Asia Real Estate Fund, Warburg Pincus established the joint venture with Wide Creek in 2023 to focus on investments in new economy real estate sectors, such as logistics, data centers, life sciences, and business parks in Korea.

That year, the JV acquired its first site in Gyeonggi’s Yangju to develop a last-mile logistics center with a net leasable area of 144,272 square meters.

The latest deal expands the Warburg Pincus-Wide Creek joint venture’s portfolio to over 244,000 square meters of net leasable area, with an estimated value exceeding $500 million upon completion.

Since its establishment in 2019, Wide Creek Asset Management has set up 13 development projects, accumulating assets under management exceeding 2 trillion won ($1.4 billion).

Co-founder and Chief Executive Kim Jung-hoon hailed the Anseong acquisition as a major milestone for the two-year-old JV.

“This strategic acquisition marks a major milestone for the joint venture. As one of the largest real estate investors in Asia Pacific, Warburg Pincus has a proven track record of building and scaling multiple new economy real estate platforms and ventures,” he said.

Manhattan-based Warburg Pincus, with $87 billion in assets under management, is expanding its local logistics footprint after announcing a third venture in Korea through the Asia Real Estate Fund earlier this month.

In that tie-up, Warburg is partnering with SK D&D, a real estate development unit of Seoul-based conglomerate SK Group, and its asset management unit D&D Investment to acquire and develop senior housing in the Greater Seoul area.

In December 2023, Warburg Pincus rolled out its Qube Industrial platform through a collaboration with Seoul-based real estate developer MQ Group.

Write to Gyeong-Jin Min at min@hankyung.com

In-Soo Nam edited this article.