Key Takeaways
- • Korean institutional investors committed £170 million ($241 million) to a BentallGreenOak-managed UK real estate debt fund, with the Korean Teachers' Credit Union (KTCU) anchoring the deal at £100 million ($142 million).
- • The blind pool fund targets approximately 1.5 trillion won ($1.3 billion) in total commitments and focuses on real estate secured loans backing office buildings, logistics facilities, and data centers across major UK cities, with a projected 9% annual return over a 10-year investment period.
- • Three South Korean institutions participated: KTCU (£100 million), the National Credit Union Federation of Korea (£40 million), and Hyundai Marine & Fire Insurance Co. (£30 million), with investments channeled through KB Asset Management in early May 2021.
- • BentallGreenOak, which manages $62 billion in assets as of March 31, 2021, is a subsidiary of SLC Management, the alternatives asset management division of Canada-based Sun Life Financial, and brought Singapore's sovereign wealth fund GIC and other international pension funds into the fund as limited partners.
- • The commitment reflects Korean institutional capital rotation toward UK commercial real estate debt markets and follows BentallGreenOak's successful exit from a Seoul office asset (31 Building) acquired in 2018 for 178 billion won.
Summary
Korean institutional investors have committed £170 million ($241 million) to a UK-focused real estate debt fund managed by BentallGreenOak, a New York-based real estate investment firm. The Korean Teachers' Credit Union (KTCU), which manages $30 billion in savings for South Korean school teachers and employees, anchored the investment with a £100 million commitment, according to investment banking sources as of May 31, 2021. Two additional South Korean institutions—Hyundai Marine & Fire Insurance Co. and the National Credit Union Federation of Korea—contributed £30 million and £40 million respectively. The three Korean LPs executed their investments through KB Asset Management in early May 2021.
The blind pool fund targets approximately 1.5 trillion won ($1.3 billion) in total capital commitments and focuses exclusively on real estate secured debt instruments backing office buildings, logistics facilities, and data centers in major UK cities. The fund projects a 9% annual return with a 10-year investment horizon. Beyond the Korean anchor investors, the fund has attracted capital from Singapore's sovereign wealth fund GIC and pension funds from other jurisdictions, broadening the LP base across institutional investors globally.
BentallGreenOak, which oversees $62 billion in assets as of March 31, 2021, operates as a subsidiary of SLC Management, the alternatives asset management business of Canada-based Sun Life Financial Inc. The fundraising reflects growing appetite among Korean institutional investors for exposure to UK commercial real estate debt markets at a time of elevated capital availability among Asian pension funds and credit unions. This commitment comes on the heels of BentallGreenOak's successful real estate transaction in Seoul, where it acquired 31 Building in central Seoul in July 2018 for 178 billion won as part of a consortium with SK D&D, demonstrating the firm's track record with Korean market exits.
The blind pool fund targets approximately 1.5 trillion won ($1.3 billion) in total capital commitments and focuses exclusively on real estate secured debt instruments backing office buildings, logistics facilities, and data centers in major UK cities. The fund projects a 9% annual return with a 10-year investment horizon. Beyond the Korean anchor investors, the fund has attracted capital from Singapore's sovereign wealth fund GIC and pension funds from other jurisdictions, broadening the LP base across institutional investors globally.
BentallGreenOak, which oversees $62 billion in assets as of March 31, 2021, operates as a subsidiary of SLC Management, the alternatives asset management business of Canada-based Sun Life Financial Inc. The fundraising reflects growing appetite among Korean institutional investors for exposure to UK commercial real estate debt markets at a time of elevated capital availability among Asian pension funds and credit unions. This commitment comes on the heels of BentallGreenOak's successful real estate transaction in Seoul, where it acquired 31 Building in central Seoul in July 2018 for 178 billion won as part of a consortium with SK D&D, demonstrating the firm's track record with Korean market exits.
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