Dutch pension asset manager APG Asset Management and Bouwinvest have committed $300m (€259m) to Tishman Speyer’s new South Korean residential venture.
The Korea Living Venture (KLV), which targets approximately $400m of equity commitments to provide over $800m of investment capacity including debt, will acquire, reposition and develop multifamily and accommodation assets throughout Seoul, Tishman Speyer said.
Graham Mackie, Tishman Speyer’s head of pan-Asia, said: “The Korea living sector represents a large but under-institutionalised opportunity, fueled by growing demand and constrained supply. This strategy allows us to scale our presence in a high-growth market while further diversifying Tishman Speyer’s global portfolio.”
Joelin Ma, senior director for real estate at APG, said: “Korea’s living sector is a strong example of the structural opportunities we are targeting across Asia’s developed markets. Demographic shifts, rising rental demand and the growing adoption of professionally managed accommodation continues to support strong long-term fundamentals, and we see this as an attractive way to access resilient, income-generating real estate exposure in the region.
“Our partnership with Tishman Speyer and Bouwinvest combines strong local execution with structural flexibility, including a potential pathway towards an open-ended core vehicle, in line with APG’s long term approach to core real estate investing.”
Robert Koot, director for Asia-Pacific investments at Bouwinvest, said: “Our Korea Living strategy reflects our strong conviction in the long-term fundamentals of one of Asia’s most dynamic and institutionally maturing residential markets.
“Building on our global experience in the living sector, we believe that partnering with APG and Tishman Speyer positions us very well to create a high-quality, scalable portfolio.”
Jorrit Sennema, senior portfolio manager at Bouwinvest, said: “Seoul’s residential market is at an important inflection point. A significant part of the existing housing stock is ageing and no longer aligned with the needs of today’s urban population. At the same time, the rapid growth of single-person households is fundamentally reshaping demand, creating a clear need for well-designed, professionally managed living solutions.
“This imbalance presents a compelling opportunity to deliver modern, high-quality housing that better reflects how people live today, while driving the continued institutionalisation of the sector.”
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