Tishman Speyer secures US$300 mil from APG and Bouwinvest for Korean rental housing fund
Seoul is experiencing a boom in rental demand, pushed by structural socio-economic changes such as increasing housing prices, more single-person households, as well as even more foreign tenants and global individuals. These characteristics add to the long-term deepness and strength of the city’s rentals market, said Tishman Speyer in a June news release.
The New York-headquartered realty company protected the commitments from APG Asset Management and Bouwinvest, which both manage assets in support of Dutch pension plan funds.
KLV is targeting to increase a sum of US$ 400 million in equity commitments, that would equate to an investment capacity of over US$ 800 million, involving expected financing.
This integrated strategy aims to stabilize near-term stability with long-term growth, so KLV might set up a varied profile of high-quality living properties, the US firm said.
KLV’s first close emphasizes growing institutional sentence in South Korea’s swiftly broadening rental housing field. “The South Korea living sector works with a large but under-institutionalised chance, sustained by expanding demand and constrained source,” stated Tishman Speyer’s head of pan-Asia, Graham Mackie.
APG top supervisor for real estate, Joelin Ma, indicated solid lengthy basics in the industry, making this alliance “an attractive means to access resilient, income-generating real estate direct exposure in the region” as APC aim ats structural chances across Asia’s developed sector.
The fund is going to concentrate on obtaining, repositioning and developing multifamily and accommodation properties in and around Seoul. In particular, it is going to target properties near significant transportation hubs with convenient access to downtown and university campuses in Seoul, Incheon, Gyeonggi-do and various other high-growth communities in the capital area, Tishman Speyer said.
Tishman Speyer has raised US$ 300 million ($386 million) in equity commitments for the initial close of its Korea Living Venture (KLV).
The fund will certainly concentrate on continuing living assets with value enhancement opportunities, while likewise preserving particular direct exposure to growth projects, leveraging Tishman Speyer’s value-add and placemaking proficiency.
Bouwinvest supervisor of Asia-Pacific financial investments, Robert Koot, defined South Korea as one of Asia’s most dynamic and institutionally developing household markets. The firm’s senior profile supervisor, Jorrit Sennema, added that a considerable part of Seoul’s existing housing stock is ageing and no more lined up with the demands these days’s urban population.
