South Korea’s IGIS Asset Management has set up a KRW400bn (€308.2m) value-add fund to invest in domestic real estate opportunities.
IGIS was recently selected by Korea’s National Pension Service and Korea Post for their value-add investment mandates for the domestic market. For these mandates, IGIS previously said it was planning to create a US$350m vehicle.
The manager said the newly formed IGIS Strategic Fund I vehicle, which is backed by two South Korea-based institutional investors, will aim to achieve capital appreciation primarily from the acquisition, redevelopment, repositioning, operation, leasing and sale of real estate investments.
IGIS, on behalf of the fund, will seek to take advantage of inefficiencies in the Korean real estate market to pursue value-add opportunities, utilising a “buy, fix, sell” strategy.
The fund is expected to target office and select retail and logistics investments in Seoul and other major markets in South Korea.
IGIS is South Korea’s largest independent real estate fund manager. It currently manages around US$20bn of capital from Korean and international sovereign wealth funds, pension funds, insurance companies and other institutional investors.
Hodes Weill Securities acted as placement agent for IGIS in connection with the capitalisation of IGIS Strategic Fund I.