KKR to Sell Storage Terminal Assets in Japan and South Korea

Global investment firm KKR & Co. Inc. has reached an agreement to sell its storage terminal businesses in Japan and South Korea, marking a strategic exit after a period of expansion. The firm announced the sale of Central Tank Terminal and Central Terminal Korea in a statement on Wednesday.

The Transaction

The assets will be acquired by a group of institutional investors, according to KKR. The identities of the buyers and the financial terms of the transaction were not disclosed.

This divestment concludes KKR's investment cycle in these specific assets, which are critical infrastructure for regional supply chains. For investors, such assets are often valued for their stable, long-term cash flows tied to industrial and agricultural activity.

Divested Portfolio

The sale encompasses a significant portfolio of logistics and storage infrastructure in two of Asia's key industrial markets. The assets include:

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• Central Tank Terminal (Japan): Operates 12 tank-storage terminals with a combined capacity of 420,000 kiloliters across more than 450 tanks.
• Central Terminal Korea (South Korea): Manages a tank-terminal complex in the industrial hub of Ulsan, along with grain-silo facilities in Ulsan and Pyeongtaek.

These businesses provide essential storage and handling services for a range of industries, including chemicals, energy, logistics, and agriculture.

Background on KKR's Ownership

KKR's investment in the sector began with the acquisition of Japan's Central Tank Terminal in 2021. The firm expanded its footprint by purchasing Central Terminal Korea two years later.

During its ownership, KKR pursued a growth strategy that involved further acquisitions in Japan and an expansion of terminal capacity in both countries, demonstrating a typical private equity approach of buying, building, and then selling an asset.