Kohlberg Kravis Roberts (KKR) Exits 'Korea-Japan Tank Terminals,' Recoups Five-Year Infrastructure Investment [fnMarketWatch]

[Financial News] Global private equity fund manager KKR is moving to exit its investments in chemical and logistics infrastructure built in Japan and Korea. This comes five years after it acquired CTT in Japan in 2021 and expanded into Korea with CTK in 2023.
The core strategy was to grow the tank-terminal business, which began in Japan and expanded into Korea, through capacity expansions and bolt-on acquisitions before selling the assets separately to institutional investors—a "buy-and-build, then exit" strategy.
According to the investment banking industry on the 30th, a fund managed by KKR signed agreements to sell CTT and CTK separately to institutional investors. The counterparties and sale prices were not disclosed.
CTT operates 12 terminals in major Japanese industrial areas, including Kawasaki, Yokohama, Osaka and Kobe. It has more than 450 tanks and storage capacity of over 420,000 kL. CTK operates a tank terminal in Ulsan, a hub of Korea's chemical industry. Through its affiliate Taeyoung Grain Terminal, it also operates grain logistics businesses in Ulsan and Pyeongtaek.
KKR's investment trajectory ran from Japan to Korea. After acquiring CTT in 2021, it added CTK in 2023, expanding its investment scope to Northeast Asian chemical and logistics infrastructure. Following the acquisitions, it pursued bolt-on acquisitions in Japan and capacity expansions and redevelopment at terminals in both countries. It also invested in its sales and operations teams, as well as its safety and maintenance systems.
One notable aspect of the deal is that CTT and CTK will be sold to institutional investors through separate agreements rather than as a single package. After expanding the assets in Korea and Japan, KKR is exiting in line with the business structure and investment demand for each asset.
Kim Yang-han, a KKR partner, said, "Based on CTT's nationwide network and CTK's strategic position in Ulsan, we identified opportunities to expand critical chemical-product storage and logistics infrastructure with high barriers to entry and solid demand. We expanded the capabilities and capacity of both companies and upgraded their operating standards." 
An investment banking industry source added, "Tank terminals are infrastructure assets with high barriers to entry, including sites and permits. KKR can be seen as having entered an investment-exit cycle in which it started investing in Japan, expanded into Korea, increased asset values, and then transferred them to institutional capital." 


[email protected] Kim Kyung-ah Reporter