Tishman Speyer secures US$300 mil from APG and Bouwinvest for Korean rental housing fund
KLV’s very first close underscores growing institutional conviction in South Korea’s rapidly broadening rental housing market. “The South Korea living industry works with a large yet under-institutionalised chance, sustained by growing demand and constricted supply,” claimed Tishman Speyer’s head of pan-Asia, Graham Mackie.
The fund is going to focus on acquiring, repositioning and developing multifamily and accommodation properties around Seoul. Particularly, it will target assets near major transportation centers with convenient connectivity to enterprise zone and university schools in Seoul, Incheon, Gyeonggi-do and various other high-growth areas in the capital area, Tishman Speyer stated.
Seoul is experiencing a boom in lease demand, steered by structural socio-economic shifts like increasing property expenses, even more single-person homes, as well as even more international occupiers and overseas students. These characteristics add to the long-term deepness and resilience of the city’s leasing market, claimed Tishman Speyer in a June news release.
Bouwinvest director of Asia-Pacific investments, Robert Koot, defined South Korea being one of Asia’s most vibrant and institutionally growing domestic markets. The firm’s senior portfolio supervisor, Jorrit Sennema, included that a substantial section of Seoul’s existing real estate stock is ageing and no more lined up with the requirements these days’s metropolitan populace.
KLV is intended to raise a total of US$ 400 million in equity commitments, that would convert to a financial investment capability of over US$ 800 million, including prepared for financing.
The fund will certainly focus on existing living assets with value improvement opportunities, while also keeping selective direct exposure to growth projects, leveraging Tishman Speyer’s value-add and placemaking expertise.
This built-in strategy intends to stabilize near-term security with continued development, so KLV might construct a diversified portfolio of high-quality living assets, the US firm said.
APG top supervisor for real estate, Joelin Ma, indicated strong continued fundamentals in the sector, making this collaboration “an eye-catching way to access resilient, income-generating real estate direct exposure in the area” as APC targets structural opportunities across Asia’s improved industry.
Tishman Speyer has raised US$ 300 million ($386 million) in equity investments for the initial close of its Korea Living Venture (KLV).
The New York-headquartered realty firm protected the commitments from APG Asset Management and Bouwinvest, which both manage assets on behalf of Dutch pension funds.
