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Pension funds

Korea Post to select GPs for €200 mn real estate fund

Its savings arm will select two asset managers, each to be in charge of up to €100 million

By Nov 28, 2021 (Gmt+09:00)

Korea Post's alternative investment division head Charles Lim speaks at ASK 2021
Korea Post's alternative investment division head Charles Lim speaks at ASK 2021

Korea Post, South Korea's state-run postal service agency, said its savings arm will select two asset managers of an open-end commingled blind pool fund worth up to €200 million. The fund will be used to acquire equities in core and core-plus real estate assets mainly based in developed countries of Europe. Korea Post will commit 20% or less of the final commitment to the fund.

The savings arm has started receiving asset management applications. Applicants should have records of €5 billion or more in equity investments in global real estate assets and €2 billion or more in equity investments in European real estate assets, both as of June 30 of this year.

Korea Post will enter into exclusive talks with some selected asset managers in January of next year and announce the final two asset managers for the fund in March. Each manager will be in charge of up to €100 million.

With 86 trillion won ($72 billion) in assets under management, the postal savings arm plans to increase its alternative asset portion from the current 8% to 10% by 2025, while focusing more on hedge funds than infrastructure assets for better liquidity.

During ASK 2021, The Korea Economic Daily's alternative investment forum held in October, the savings arm's alternative investment division head Charles Lim said more global general partners should actively bring investment opportunities to Korean limited partners, as many Korean investors allocate a significant portion of their investment to private equity and private debt assets. Lim also said more international GPs should consider setting up Korean offices for better communications with Korean investors.

Write to Ji-hye Min at spop@hankyung.com

Jihyun Kim edited this article.
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