Korea Post’s savings arm plans to invest around $300 million in mezzanine tranches on commercial properties in the US and other developed countries in 2019 for a gross IRR of 7% or above.
It will select about two fund houses for the mandate which can be undertaken either through a commingled fund or a separately managed account (SMA), Korea Post said on April 19.
It is targeting mezzanine debts, preferred equities and B-notes, with those from the US accounting for at least 50%.
Qualified candidates must manage more than $7 billion in real estate assets.
For a commingled fund type, the proposed fund size must be at least $500 million.
For an SMA type, the proposed investment structure must be co-investment with an overseas institutional investor such as a global pension fund and an insurance company.
The deadline for the proposals is May 7.
By Chang Jae Yoo
<Edited by Yeonhee Kim>