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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] The National Pension Service (NPS) is set to invest a total of KRW 600 billion in domestic real estate asset management firms, a move expected to intensify competition among managers as significant capital flows into the property market.
According to investment banking (IB) industry sources on March 26, NPS plans to select two domestic real estate asset managers, allocating KRW 300 billion to each. The investment will be made through an “opportunistic fund,” which targets undervalued assets—such as properties with low occupancy rates—and seeks to enhance value through development, aiming for high-risk, high-return opportunities.
Meanwhile, NPS is also preparing to relaunch its real estate lending fund, which was resumed in 2024 for the first time in five years. The pension fund is expected to issue a request for proposals in the second half of this year to select external managers.
Selected managers for the lending fund will be required to operate vehicles that invest in domestic commercial real estate loans. As of 2024, the loan-to-value (LTV) ratio was set at 70% or higher.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
