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Korea Post lines up US core fund investments – Exclusive

The state-owned investor has put out an RFP for core and core-plus strategies in the US and plans to commit a total of $400 million.

Seoul-based investor Korea Post is selecting investment managers for its first investment into US core and core-plus real estate funds, PERE has learnt.

The insurance division of the state-owned investor is planning to commit a total of $400 million across the two strategies, two funds respectively in each core and core-plus with $100 million to be allocated to each investment manager.

Korea Post issued its request for proposal (RFP) on Wednesday, and submissions are due by May 30, before the investor makes its final manager selections by June 15.

The investor will make commitments in either blind pool or open-ended real estate funds, but its equity stake cannot represent more than 25 percent of the total fund size, according to the RFP document seen by PERE. Only fund managers with at least $10 billion of asset under management in real estate (as of 31 December 2015), are eligible for consideration, the document added.

Previously, Korea Post has focused on one-off core deals globally and now has moved to investing in commingled funds. For instance, last November CBRE Global Investors acquired two class A office buildings in downtown Atlanta on behalf of the investor.

Korea Post's insurance division currently has 2 percent of its portfolio allocated to real estate, including investments into private core and opportunistic real estate funds targeting the office and retail sectors. The investor currently has around $1.3 billion of assets under management in global real estate, $1 billion of which is in the US.