A South Korean investor has entrusted CBRE Global Investors with a sizeable ticket to invest in Europe.
The Public Officials Benefit Association (POBA) has committed €200 mln with the investment manager in order to build a diversified European real estate portfolio.
After leverage, the equity cheque should mean firepower in excess of €400 mln.
This is not the first time Poba has committed to a programme with the US-based firm.
In 2016, Poba handed CBRE GI and IGIS Asset Management a mandate to invest in European real estate, and this latest round of equity represents the third tranche of capital committed to the separate account.
Initially established with a focus on offices, the mandate has been expanded to include residential, logistics and alternative sectors such as healthcare (life sciences) and data centres, as well as listed real estate securities.
‘Our mandate from Poba is the first discretionary separate account for direct real estate investments in Europe from a South Korean institutional investor, which gives us the unique ability to deploy capital quickly on their behalf, with certainty of execution,’ said Je wook Joung, portfolio manager at CBRE GI.
Bas Tiemstra, head of separate accounts, Continental Europe & APAC Inbound, added he was seeing increasing demand from investors such as Poba for more ‘holistic investment solutions’ across both regions and sectors.
‘This ranges from direct real estate mandates to closed and open-ended funds as well as separate accounts for global listed real estate and infrastructure strategies,’ he said.
