On March 10, Warburg Pincus, SK D&D, one of South Korea’s largest multifamily operators and developers, and D&D Investment, the subsidiary asset management arm of SK D&D, announced that they have signed a joint agreement to invest in the senior housing market in South Korea. This partnership will focus on acquiring and developing senior housing for the senior population in the Greater Seoul Area.
The venture is seeded with three high-quality, strategically located assets in Seoul’s most amenitised districts, catering to the rapidly growing elderly population. The first project, situated in Bangbae-dong, Seocho-gu, within Seoul’s core Gangnam residential district, will be developed into a 12-story high-end assisted living facility spanning over 10,000 square meters. Construction is scheduled to begin in early 2026, with completion targeted for 2028.
The other two assets are already in operation, providing well-established infrastructure with convenient access to nearby hospitals and amenities.
The partnership with SK D&D Investment marks the third venture in South Korea through Warburg Pincus Asia Real Estate Fund, following the partnership with Wide Creek Asset Management to focus on new economy real estate; and QUBE, its joint venture with MQ logistics to focus on modern logistics warehouses.
Takashi Murata, Managing Director, Co-Head of Asia Real Estate and Head of Japan at Warburg Pincus, said, “We have built a high conviction that the senior housing market in South Korea presents tremendous opportunities, fuelled by the shifting demographics and a growing aging population. In 2024, South Korea has officially become a super-aged society, with individuals aged 65+ representing 20% of the population, amid a significant shortage in both the quantity and quality of senior housing options. Meanwhile, the South Korean government has proactively introduced supportive policies and measures to bolster the senior housing market in recent years, providing a significant tailwind to this nascent industry. We are pleased to partner with SK D&D Investment to foray into the senior housing market in South Korea and look forward to leveraging our respective expertise and resources to capture the opportunities.”
