Korea's NPS shifts to debt and higher risk

South Korea's National Pension Service (NPS) is planning to spend $1.5 bn (EUR 1.12 bn) in core-plus and opportunistic investments this year in a major shift of its strategy to higher risk acquisitions.

'We expect that we will commit about $1.5 bn to core-plus, value-added, opportunistic commingled and separate account fund managers in 2011, although we have not decided yet which particular funds to select for our investments,' Andie Kang, real estate investment manager at NPS, told PropertyEU Magazine in an interview.

Traditionally, the institution has focused on core property acquisitions in Western Europe but it is now looking to move up the risk curve as increased competition in mature markets continues to put pressure on yields. 'On the European continent, we see opportunities especially for investing in real Korea’s NPS shifts to debt and higher risk estate debt and in properties in Central and Eastern European countries,' Kang noted.

The full interview appears in the March edition of PropertyEU Magazine. Click on the link below to subscribe