Global investment giant TH Real Estate has been awarded a mandate to invest in the UK Commercial Real Estate (CRE) debt market by The Korean Teachers’ Credit Union (KTCU).
The South Korea retirement fund is investing in senior loans secured on London office assets.
TH Real Estate, an investment affiliate of Nuveen, said it had now raised approximately £300 mln (€335 mln) for its Global Real Estate Debt Partners – Fund I (UK) investment strategy. The new mandate with KTCU will target annual returns in the mid-5% range with senior loans at moderate loan-to-value ratios and five-year terms.
'UK CRE debt is appealing to investors because it offers income-focused returns from a protected position in the capital structure. London offices in particular are underpinned by global structural trends and well positioned to deliver long-term value growth,' commented Christian Janssen, head of debt at TH Real Estate.
'We are very pleased to be working with KTCU and believe this mandate is a testament to our track record and proven expertise in the CRE debt market.'
Established in 1971, KTCU acts as the pension fund for all educational personnel in Korea. The company has 740,000 scheme members and assets of KRW 27 trn (€20 bn).
This latest debt instruction follows a mandate for real estate whole loan investments from Dongbu Insurance Company and Dongbu Life Company, one of Korea’s largest insurers.
