Canada Pension Plan Investment Board (CPP Investments) has entered into a partnership to invest KRW500bn (€284m) in hospitality assets in Korea.
The Canadian investor will hold a 95% interest in the partnership alongside BlueCove Investment, a Korean hospitality-focused asset manager, which will own the remaining 5%.
It marks CPP Investments’ first direct investment in Korea’s hospitality sector.
The partnership will work with established global hotel operators while acquiring and repositioning hotel assets across Seoul.
CPP Investments has committed up to KRW119bn to seed the venture’s initial projects.
“Korea represents a compelling next step in CPP Investments’ hospitality strategy in the Asia-Pacific region, building on our recent hospitality investment in Japan,” said Gilles Chow, head of real estate for Asia-Pacific at CPP Investments.
“Korea’s hospitality market is supported by strong domestic demand and growing inbound tourism. Together, these dynamics position the partnership to capture the sector’s continued growth and deliver attractive long‑term returns for the CPP fund.”
Esby Kim, CEO of BlueCove Investment, said: “We see strong momentum in Korea’s hospitality market. By bringing together CPP Investments’ global capital and insights and BlueCove’s on-the-ground expertise, we are well positioned to optimise both existing and new hospitality assets across the country. Together, we look forward to building a portfolio that delivers lasting value.”
To read the latest IPE Real Assets magazine click here.
