South Korea’s Public Officials Benefit Association (POBA) has bought a 50% stake in a German real estate portfolio managed by a Canadian REIT.

The pension fund for government officials has provided €221m in equity to Dream Global REIT (formerly Dundee) for the interest in the seven properties.

The deal provides POBA with its first exposure to the German property market, having already invested in the UK, China and Brazil.

Eunghan Park, executive managing director at POBA, said: “This strategic joint venture and significant acquisition of a high quality office portfolio in Germany allows us to expand into one of the most highly sought‐after real estate markets in the world.”

POBA bought into the portfolio at yield of 5.3%, according to Dream. The REIT, listed on the Toronto Stock Exchange, said it would reinvest the capital in further German office properties.

Dream Global REIT described the deal as a “long-term joint venture”.

Michael Cooper, vice chair of the board of trustees, said: “We now can grow with equity from the sale of properties from the original portfolio, with partners and with equity from the Canadian capital markets.

“The opportunities in Germany are plentiful and strategic partners like POBA will help us grow in Germany and potentially elsewhere when we identify appropriate opportunities.”

Dream Global REIT also announced it had acquired Officium, an office in Stuttgart for €46.9m at a yield of 6.6%.

The seven properties in which POBA invested – ABC Bogen in Hamburg, Löwenkontor in Berlin, Werfthaus and K26 in Frankfurt, doubleU in Düsseldorf, Z‐Up in Stuttgart, and Marsstrasse 20‐22 in Munich – are part of a portfolio of more than 280 assets owned by Dream Global REIT.