S Korea pension fund NPS allots $433m for real estate investments

Visual from NPS website

South Korea’s National Pension Service (NPS) has allotted up to $432.8 million (500 billion won) to its domestic real estate ventures.

NPS has tapped the services of Samsung SRA Asset Management Co and IGIS Asset Management Co to manage the fund, the Pulse reported.

The pension body is looking at creating investor pools to invest in office buildings secured with credible tenants.

The real estate assets will complete making investments within the next two years and run for 10 years.

Whenever the fund has decided on a buy target, a letter of commitment will be issued to the investor pool.

Committed capital of up to 70 per cent is allowed, while credit finance cannot exceed 60 per cent. An annual yield of over 7 per cent has been fixed. However, investors will be paid of bonus returns within 1.5 per cent of additional profit if the fund yields internal rate of more than 8 per cent.

NPS oversees $430 billion in assets. Only recently, it named four private equity firms to manage 700 billion won ($607 million) of its funds.

VIG Partners, Skylake Investment, Lindeman Asia Investment and SG Private Equity, were tasked by NPS to run its private equity fund (PEF).

VG Partners and Skylake Investment will manage investment in large-cap companies with 250 billion won of entrusted funds for each, while Lindeman Asia and SG Private Equity will be allocated 100 billion won each to invest in mid-sized companies.

Also Read:

South Korea pension body NPS appoints 4 PE firms to manage $607m in funds

Korean pension fund POBA to double exposure in global PE vehicles, to invest $200m

Japanese pension fund Chikyoren taps UBS, JP Morgan as PE managers

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.