NPS, Allianz create $2.3 bn joint fund to invest in property assets in Asia

2020.06.30 11:10:05 | 2020.06.30 11:10:27

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South Korea’s National Pension Service (NPS), the world’s third largest pension fund, announced Monday it will jointly create a $2.3 billion worth fund with Germany-based Allianz Group, a leading global property investor, to invest in real estate assets in Asia.

The two parties signed a strategic partnership to jointly form a real estate fund worth $2.3 billion to find better investment opportunities in major cities of Asia including Australia, Singapore, Japan and China. Each party will invest $1.15 billion in the joint fund that will mainly invest in landmark office buildings, logistics centers or residential facilities across Asia’s major cities.

Allianz Group with massive foothold in 70 countries has 990 trillion won ($828.1 billion) worth assets under management, of which 99 trillion won is assigned in real estate assets, the largest real estate investment by a single institutional investor.

NPS with 724 trillion won worth assets under management is planning to expand forays into Asia’s major economies and emerging markets, as well as advanced countries in the United States and Europe, to diversify its portfolio for overseas investment.

“Through the partnership with the leading global institutional investor, NPS is aiming to share its various investment knowhow and strengthen market competitiveness of both to seek for better business opportunities and further for greater returns,” said Ahn Hyo-joon, chief investment officer of NPS.

By Hong Hae-jin and Lee Ha-yeon

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