Korean pension service eyes trophy assets in London

Rockspring Property Investment Managers confirmed on Friday that it has been instructed by the National Pension Service of Korea (NPS), the world's fifth largest pension fund, to invest on its account in Central London trophy assets.

Rockspring said it is evaluating a number of possible acquisitions in the Central London market on behalf of the newly established, Rockspring-managed, 'NPS Central London Property Limited Partnership' and expects to conclude a number of transactions before the end of 2009.

In a statement, Rockspring said it is targeting major individual properties, typically prime landmark assets located from the West End through to the City, which benefit from long leases with strong tenants in the office and retail sector.

Typically individual lot sizes will be in excess of £150 mln (EUR 171 mln), and can be acquired with or without debt, enabling each acquisition to be agreed and concluded speedily, Rockspring said.

NPS is an existing client of Rockspring as an investor in its Rockspring TransEuropean IV fund. The pension service was established in 1988 and has current reserves of approximately $200 bn (EUR 139.9 bn) and a targeted fund size of $440 bn by the end of 2012. It has a specific strategy to invest up to $3 bn acquiring real estate assets in London, New York, Tokyo and Sydney in 2009.