US real estate investment manager Bridge Investment Group has agreed a partnership with KB Asset Management (KBAM) that will provide additional opportunities for the former to raise capital in Korea.
The new relationship between Bridge and the asset management arm of KB Financial, Korea’s largest financial group, will provide KBAM with opportunities to expand and strengthen its overseas real estate management capacities, the companies said.
KBAM said it plans to enhance its deal-sourcing capabilities by utilising Bridge’s real estate investment network across the US and secure joint investment opportunities as a result of the agreement.
Over the next four years, KBAM is expected to make at least $1bn (€1bn) worth of commitments to Bridge’s funds, including expected commitments to multifamily and single-family rental strategies, and additional commitments from third-party investors other than the KBAM of at least $2bn, the two firms said.
As part of the relationship, Bridge will also utilise KBAM’s wide Korean domestic fund sales organisation to develop and sell foreign real estate products for domestic individual investors.
KBAM said: “Bridge Investment Group has long-established its asset management expertise, demonstrating excellent profit generation through asset value increase.
“We decided that Bridge is the right strategic partner for KBAM’s global expansion in asset management capabilities as well as providing quality real estate products for investors in Korea through this collaboration with KB Financial Group.”
Seunghwan Lee, senior managing director, Asia, for Bridge Investment Group, said: “We are excited to team up with KBAM to continue to deliver attractive investment opportunities to a key Korean investor base.
“Their reputation and expertise will deepen Bridge’s exposure in Korea and increase our penetration of this core market in Asia.”
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