Korea Post creates fund U.S. institutional majors for property invest

2017.03.15 17:51:28 | 2017.03.15 17:51:57
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Savings Bureau of Korea Post, the nation’s second largest institutional player with 110 trillion won ($96.3 billion) resources to oversee, is teaming up with U.S. institutional majors to invest in American commercial properties.

The fund has agreed to create a blind pool this month worth 1 trillion won with the Teachers Insurance and Annuity Association of America (TIAA), Prudential Life Insurance Co. and New York Life Insurance Co.

Korea Post will finance half of the fund, while the other rest comes from the U.S. investors. The fund will be used to buy senior mortgage bonds backed by office buildings across large U.S. cities such as New York and Washington D.C. Investors are eyeing yields of 5 percent per annum.

From Korea, Meritz Real Estate Asset Management Co., Samsung SRA Asset Management Co., and Hana Asset Management Co. will manage the fund. TIAA, Prudential Life Insurance and New York Life Insurance Co. will run the U.S. side.

A Korean and U.S. manager will jointly run three separate parts in the fund.

By Song Gwang-sup

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]

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