Korea Post, considered a heavyweight in domestic alternative investments, has selected Mirae Asset Global Investments as the trustee for its real estate fund.
According to the investment bank (IB) industry on the 29th, Korea Post selected Mirae Asset Global Investments the day prior as the preferred bidder for the domestic real estate core strategy fund of Korea Post Financial. Korea Post plans to finalize the selection of Mirae Asset Global Investments as the trustee after conducting local due diligence next month and going through an investment review committee.
Korea Post's selection of a trustee for the domestic real estate core strategy fund marks the first time in three years since 2022. In 2022, Korea Post selected Mirae Asset Global Investments and committed 400 billion won, and it has chosen Mirae Asset Global Investments as the trustee again this time.
Korea Post plans to contribute approximately 500 billion won, which is 85% of the fund's establishment amount, to create a fund with a scale of at least 600 billion won. The fund's investment targets are "office spaces in major areas of Seoul and logistics facilities located in the metropolitan area." However, more than half of the fund's establishment amount must be invested in offices. The investment period is set to be within two years, and the fund's term is within 12 years. The target return rate is an internal rate of return (IRR) of over 7%.
The core strategy fund is centered on investing in core assets that can secure stable rental revenue over the long term. Development of assets with over 50% pre-leasing confirmed is allowed up to within 40%. The final selected trustee must contribute at least 1% of the total agreed amount, including subsidiaries.
Korea Post issued a public announcement for the selection of trustees last March. Seven to eight management companies participated in the first round of applications, among which Mirae Asset Global Investments, Hana Alternative Investments, and Koramco Asset Trust were shortlisted.