Tishman Speyer secures US$300 mil from APG and Bouwinvest for Korean rental housing fund
Seoul is experiencing a boom in leasing demand, steered by structural socio-economic shifts like going up property prices, even more single-person families, as well as more international residents and global students. These characteristics add to the long-term deepness and resilience of the city’s rental industry, claimed Tishman Speyer in a June news release.
KLV is targeting to increase a total of US$ 400 million in equity commitments, that would convert to a financial investment capacity of over US$ 800 million, involving expected financing.
This integrated strategy aims to stabilize near-term security with long-term development, so KLV may set up a varied profile of high-quality living possessions, the US firm claimed.
Tishman Speyer has already raised US$ 300 million ($386 million) in equity investments for the initial close of its Korea Living Venture (KLV).
The New York-headquartered property company secured the commitments from APG Asset Management and Bouwinvest, which both take care of assets on behalf of Dutch pension funds.
APG senior supervisor for real estate, Joelin Ma, noted strong continued fundamentals in the industry, making this alliance “an attractive means to access resilient, income-generating realty exposure in the region” as APC aim ats structural chances across Asia’s developed markets.
Bouwinvest supervisor of Asia-Pacific financial investments, Robert Koot, described South Korea as one of Asia’s most dynamic and institutionally growing domestic markets. The firm’s senior portfolio supervisor, Jorrit Sennema, included that a significant part of Seoul’s existing real estate stock is aging and no more straightened with the needs of today’s metropolitan population.
The fund will focus on existing living assets with worth enhancement opportunities, while also keeping particular direct exposure to growth projects, leveraging Tishman Speyer’s value-add and placemaking skills.
The fund is going to pay attention to obtaining, rearranging and creating multifamily and lodging properties in and around Seoul. In particular, it is going to target properties near major transportation hubs with convenient connectivity to enterprise zone and university campuses in Seoul, Incheon, Gyeonggi-do and other high-growth communities in the capital area, Tishman Speyer claimed.
KLV’s first close underscores expanding institutional sentence in South Korea’s quickly broadening rental housing sector. “The South Korea living industry stands for a large however under-institutionalised chance, fuelled by growing need and constricted supply,” stated Tishman Speyer’s head of pan-Asia, Graham Mackie.
