Samsung SRA to launch second global fund

The firm will again look to raise KRW500bn from Korean institutions looking to gain exposure to investments in office properties in international gateway cities.

Samsung SRA Asset Management, the real estate investment management business of Samsung Life Insurance, is attempting to raise KRW500 billion ($437 million; €382 million;) for its second global private commingled real estate fund.

Through the Samsung Global Core Office Real Estate Investment Trust No 2 the firm will be deploying the capital on a core/core-plus strategy and will look to invest in office properties in the gateway cities of the US, the UK, France, Germany, the Netherlands and Australia.

The fund has a nine-year life, comprising a two-year investment period and seven-year hold period.

The offering is a follow-up to Samsung SRA’s pioneering debut global fund, KRW 500 billion Global Core Office Real Estate Investment Trust No 1, which was the first private real estate fund raised by a Korean investment manager expressly intended for Korean institutional investors to be able to gain exposure to office properties in markets outside of Korea.

In October, the Korean investor acquired the Commerzbank Tower, Germany’s tallest building, through an individual mandate with Augsburg, Germany-based real estate investment manager Patrizia Immobilien. The deal value was not disclosed but has been reported to be as much as €800 million.

The lion’s share of Samsung SRA’s approximately $2 billion of assets under management are Korean properties held across a number of small funds which have been capitalized by both Korean and international institutional investors. Most of its assets are held by the firm on a direct basis although it also manages certain indirect positions.

Samsung SRA also currently handles all acquisition and disposition activities for Samsung Life Insurance’s real estate portfolio.