CalSTRS, Korea's KTCU consider launching 2nd real estate JV

The Korean Teachers’ Credit Union (KTCU), a retirement fund for South Korean teachers and employees, and the California State Teachers' Retirement System (CalSTRS) signed an investment partnership agreement on Aug. 30, KTCU said on Wednesday.

Under the agreement, the two parties will review starting a second joint venture for real estate, invest in a broader range of assets and strengthen their business collaborations.

KTCU and CalSTRS signed an agreement to launch their first real estate JV with 612.2 billion won ($442.2 million) of capital in March. The venture aims to invest in US-based logistics centers, KTCU said at the time.    

CalSTRS is KCTU's second global pension partner. The Korean retirement fund has partnered with the Teachers Insurance and Annuity Association of America (TIAA) since 2016 for real estate investment. In 2019, KTCU and TIAA launched a third JV with capital of $510 million for co-investment.    

KTCU manages 41.8 trillion won in assets as of end-2021. The alternative asset portion amounts to 25.9 trillion won, including 7.1 trillion won in overseas real estate.

The Korean retirement fund will continue to build strategic partnerships with global pension funds, KTCU chair Kim Sang-gon said.

Write to Jun-Ho Cha at chacha@hankyung.com
Jihyun Kim edited this article.