[RFP] Korea Post plans to invest $300 mn in real estate mezzanine debts

  • 2019-04-23

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.

1.-RFP.pdf

2.-Proposal-format.xls

By Chang Jae Yoo

yoocool@hankyung.com

<Edited by Yeonhee Kim>