South Korea’s Public Officials Benefit Association (POBA) has made a $100m (€94.8m) capital commitment to 3650 REIT, a US commercial real estate lender.
3650, which originates and manages portfolio loans for institutional investors said the South Korea-based public pension fund has committed to its Bridge and Event-Driven (BED) fund.
The manager said POBA’s capital will be used to expand BED’s lending strategy in the US, which focuses on shorter-term loans for borrowers pursuing ground-up construction, acquisitions, repositionings, recapitalisations, or the restructuring of partnerships.
Harry Song, the head of overseas real estate for POBA, said: “3650 is an ideal partner for POBA as we continue to seek international relationships with leading alternative assets firms in the US and worldwide.
“The firm’s ability to utilise its lending experience and expertise through multiple real estate market cycles to deploy capital, even amidst today’s sector-specific and economic challenges, make it an attractive option to generate appealing, risk-adjusted returns for our fund members.”
3650 REIT co-founder and managing partner Jonathan Roth, said POBA’s capital commitment is yet “another testament to the strength of 3650’s lending approach, which continues to garner attractive, risk-adjusted returns for our institutional investors around the globe”.
“As fund allocators seek reliable havens for their capital in the US, 3650’s high-touch, hands-on, property-level approach remains attractive for those looking to make longer-term investments backed by sponsors with well-located, relevant assets,” he added.
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