Savills Investment Management, the international real estate investment manager, has announced the completion of its strategic alliance with Korean life insurer Samsung Life, and its real estate asset management subsidiary, Samsung SRA.
Completion of the transaction sees Samsung Life acquire a 25% minority interest in Savills IM for £63.75 mln (€76 mln) paid in cash and an agreement to commit capital of $1 bn (€880 mln) over the initial four years of the relationship to Savills IM’s investment strategies.
Samsung Life has options to increase its interest in Savills IM by up to a further 10%, depending upon the quantum and timing of the provision of capital to Savills IM’s investment products, the maximum being achievable if at least US$2 bn of capital is committed during the next four years.
Savills IM said the partnership would allow it to grow existing products across real estate equity and debt, as well as paving the way for the launch of new strategies targeting asset classes including European logistics and living.
Alex Jeffrey, CEO of Savills IM, said: 'We are delighted to have completed this ground-breaking alliance. We warmly welcome Samsung Life as a new shareholder in our business.
'In anticipation of the completion, we have been already working together intensively to bring forward a range of new products in both debt and equity real estate and we look forward to the future together with great confidence.'
Young-Muk Jeon, CEO of Samsung Life, said: 'We are excited about the new partnership. Savills IM is one of the most prominent real estate managers with a strong brand, high calibre investment experts, and a quality investor base across the globe.
'I firmly believe that this partnership will be an important milestone for Samsung Life. It will significantly contribute to further diversifying our portfolio and developing our asset management business more globally.'
