Korea Post Savings seeks real estate mezzanine managers

The South Korean government agency is looking to commit up to $200m to US or European real estate funds.

Institution: Korea Post
Headquarters: Sejong-si, South Korea
AUM: 133.85 trillion Korean won
Allocation to alternatives: 6.0%

Korea Post Insurance, the investment unit of Korea Post, has issued a request for proposal for real estate fund managers with a focus on mezzanine strategy.

The firm aims to commit a total of $200 million to one or two managers targeting mezzanine strategies such as mezzanine loans, B notes and subordinated debt.

The successful firms should have at least $10 billion invested in global real estate, with five years of management experience in global real estate mezzanine funds. The fund should also have a net IRR of at least 6 percent.

The submission deadline is 19 August 2020 with a decision put forth to the investment committee planned between September and October.

As illustrated below, the 133.85 trillion Korean won ($111.5 billion; €96.0 billion) South Korean government agency has a six percent allocation to alternative investments.

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