Mirae Asset to be named Korea Post’s core real estate fund operator

Mirae Asset Global Investments Co. is set to manage the mandate of more than 600 billion won ($416.8 million) in core real estate fund investment by Korea Post, investment banking industry sources said on Tuesday.

Korea Post on Monday picked Mirae Asset as a preferred bidder to manage the fund, according to the sources. The national postal service is poised to name the asset manager as the fund's operator after due diligence and investment council meetings.

Mirae Aset managed Korea Post’s last core real estate fund in 2022, to which the agency allocated 400 billion won.

TARGETS 7% IRR

Korea Post is set to allocate about 500 billion won to set up the latest fund of more than 600 billion won.

The agency decided to spend more than half of the fund on offices in key areas of Seoul and the rest on logistics centers in the Seoul metropolitan area, with an investment period of less than two years and a fund maturity of less than 12 years.

It targets an internal rate of return (IRR) of about 7%.

Korea Post has searched for a fund manager to operate the core real estate fund since March.

Mirae Asset, Koramco REITs Management and Trust Co. and Hana Alternative Asset Management Co. were shortlisted as the fund's operator earlier this month.

Write to Gyeong-Jin Min at min@hankyung.com
 
Jongwoo Cheon edited this article.