Warburg Pincus Partners with SK D&D for Senior Housing Investment in South Korea
Deal News | Mar 10, 2025 | Warburg Pincus
Warburg Pincus, renowned for its private equity investments, has joined forces with SK D&D and its subsidiary, D&D Investment, to invest in the burgeoning senior housing market in South Korea. The collaborative partnership aims to leverage Warburg Pincus' global resources and SK D&D's local expertise in development and operations to meet the increasing demand for quality senior housing. The initial projects include three strategically located assets in Seoul, with the first being a high-end assisted living facility set to begin construction in 2026. This investment is part of Warburg Pincus Asia Real Estate Fund's strategy and is a response to South Korea's growing elderly population and evolving demographic needs.
Sectors
- Private Equity
- Real Estate Development
- Senior Housing
Geography
- South Korea – The investment is specifically targeted at the South Korean senior housing market.
- Seoul – The initial projects are located in the Greater Seoul Area, a key region of focus.
Industry
- Private Equity – Warburg Pincus is a leading private equity firm involved in this new partnership and investment.
- Real Estate Development – The investment focuses on senior housing development, a key segment of real estate.
- Senior Housing – The primary focus of the investment is to develop senior housing in South Korea to cater to the aging population.
Financials
- KRW 4 trillion – Total managed real estate development projects and assets by D&D Investment.
- Over US$9 billion – Warburg Pincus' investments in more than 50 real estate platforms and ventures in Asia.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Warburg Pincus | Investing Company | Company | Warburg Pincus is a pioneer of private equity global growth investing, focusing on strategic real estate investments. |
| SK D&D | Local Partner and Developer | Company | SK D&D is one of South Korea's largest multifamily operators and developers, providing local expertise in the venture. |
| D&D Investment | Asset Management Subsidiary | Company | A subsidiary of SK D&D, specializing in real estate asset management, providing management capabilities and strategic support. |
| South Korean Government | Supportive Regulator | Government | The government has introduced supportive policies to bolster the senior housing market, providing a favorable investment environment. |
| Takashi Murata | Co-Head of Asia Real Estate | Person | Takashi Murata is a Managing Director at Warburg Pincus, representing the firm's strategic focus on the investment in South Korea. |
| Kim Do-hyun | CEO of SK D&D | Person | Kim Do-hyun is responsible for the strategic direction and local execution of the joint venture. |