Tishman Speyer secures US$300 mil from APG and Bouwinvest for Korean rental housing fund
The fund will certainly focus on presenting living properties with worth enhancement opportunities, while also keeping selective direct exposure to development plans, leveraging Tishman Speyer’s value-add and placemaking expertise.
APG senior director for real estate, Joelin Ma, noted strong continued fundamentals in the market, making this alliance “an attractive means to access resilient, income-generating real estate direct exposure in the region” as APC focus on structural chances throughout Asia’s developed sector.
Bouwinvest director of Asia-Pacific financial investments, Robert Koot, explained South Korea as one of Asia’s most vibrant and institutionally maturing property markets. The company’s senior portfolio manager, Jorrit Sennema, included that a considerable part of Seoul’s existing housing supply is ageing and no more aligned with the requirements of today’s metropolitan populace.
This built-in approach aims to stabilize near-term stability with continued development, so KLV may put together a diversified profile of high-quality living properties, the US firm stated.
Tishman Speyer has built up US$ 300 million ($386 million) in equity commitments for the first close of its Korea Living Venture (KLV).
The New York-headquartered property firm protected the dedications from APG Asset Management and Bouwinvest, which both handle properties on behalf of Dutch pension funds.
KLV is targeting to increase a sum of US$ 400 million in equity commitments, which would translate to an investment ability of over US$ 800 million, including anticipated financing.
The fund will concentrate on obtaining, repositioning and creating multifamily and accommodation properties in and around Seoul. Particularly, it will most likely target properties near significant transportation hubs with convenient connectivity to business districts and university schools in Seoul, Incheon, Gyeonggi-do and other high-growth neighbourhoods in the capital region, Tishman Speyer said.
Seoul is experiencing a boom in leasing demand, driven by structural socio-economic shifts like going up housing costs, even more single-person households, as well as more foreign occupiers and global students. These dynamics add to the long-term deepness and strength of the city’s rental market, claimed Tishman Speyer in a June news release.
KLV’s first close emphasizes increasing institutional sentence in South Korea’s rapidly increasing rental housing field. “The South Korea living market stands for a large but under-institutionalised chance, sustained by growing demand and constrained supply,” said Tishman Speyer’s head of pan-Asia, Graham Mackie.
