NPS’s 2022 real estate portfolio in five charts

The investor added at least 23 new funds in 2022, including GLP Europe Income Partners III and Invesco US Real Estate Fund VI.

National Pension Service of Korea had committed 38.3 trillion won ($29.1 billion; €26.5 billion) to real estate as of 2022 as the investor continues to grow its exposure in the asset class, according to its latest annual investment disclosure.

The South Korean pension plan’s real estate commitments increased by 19.9 percent from the previous year, when the investor committed around 32 trillion won to the asset class. At the same time, its real estate NAV also went up by 12.4 percent from 39.5 trillion won in 2021 to 44.4 trillion won in 2022.

The pension fund added at least 23 new funds in 2022 where North America-focused funds took up a significant portion of the biggest commitments. These include Invesco US Real Estate Fund VI, HCP Studio Fund and EQT Exeter Industrial Core-Plus Fund IV.

The investor prefers investing directly in projects for domestic real estate while most of its overseas investments are made via funds. For overseas allocation, fund investments in the Americas and core real estate represented NPS’s largest exposures in terms of geography and strategy, with 9.7 trillion won and 15.9 trillion allocated, respectively, at year-end 2022.

While the annual disclosure summarized NPS’s real estate exposure as of December 2022, the pension fund’s real estate AUM increased further to reach 48.5 trillion won at the end of March in 2023 from 46.4 trillion won at the end of 2022, according to its Q1 report. The asset class represented 31.8 percent of the South Korean pension fund’s alternatives portfolio in Q1 2023.

-Chin Yuen contributed to this report.