POBA to re-up for Europe property SMA with $224 mn: report

  • 2018-08-01

The Public Officials Benefit Association (POBA) will commit an additional 250 billion won ($224 million) for core-plus and value-add property investments in Europe to a separate account, through which it had acquired three office buildings for $300 million, according to a local media report.

POBA’s investment committee recently approved the re-up for the separately managed account (SMA) run by a consortium of CBRE Global Investors LLC and South Korea’s IGIS Account Management Co. Ltd., edaily, a news provider, reported on July 29.

It targets small to mid-sized office buildings in Europe. Unlike the three core property assets acquired via the account, it will employ core-plus and value-add strategies for the new capital commitment.

Between 2016 and 2017, POBA deployed 193 billion won to the SMA, short of the originally committed 250 billion won.

It was the first SMA targeting one region for a South Korean mutual aid association and bought three commercial buildings in Belgium, Germany and Spain.

“Because core asset prices in Europe already ran up sharply, it’s difficult to find a new target,” a POBA source was quoted as saying.

“We’re considering value-add investment for portfolio diversification. If we use the network of the existing core SMA, we will be able to make efficient investment in Europe,” the source added.

<Edited by Yeonhee Kim>