Real Estate Fund is an indirect investment platform which raises capital from a single or multiple investor(s)
through a collective investment vehicle(trust) and invests in commercial real estate,
real estate related loans and marketable securities on behalf of the investors
※ Funds can be subscribed through securities companies and commercial banks and the company does not directly engage in sale of the fund.
※ Fund’s asset is entrusted to a trustee and managed in accordance to the Financial Investment Services and Capital Markets Act of Korea.
※ Funds are not protected by the Korean Deposit Insurance Corporation under the Depositor Protection Act. Dividend distribution may vary depending on performance of each fund.
Real estate funds can be classified into different types as shown below based on their characteristics and strategies
Real estate fund which targets to acquire commercial real estate (Office, retail, hospitality, logistics or any other sector), receive rent, and realize capital gain on disposition when possible
Real estate fund that directly engages in real estate development and aims to gain profits through lease or sale of the developed property(s)
Real estate fund that provides debt to and receive interest from an entity engaging in real estate development and management business
Real estate fund that invests in real estate related securities (REITs, PFV, SPC equity security)
Real estate fund that invests over 80% of its total asset into other real estate fund(s)
Below are the five main investment target sectors
Implementation of strategies best fitting to investors’ with different risk appetites
leveraging on our market expertise and in-depth analysis
Target stabilized, fully leased properties to generate stable and predictable cash flow
Example) Investment in prime assets in prime locations occupied by high- credit tenants
Investment in high quality asset with room for further improvement through focused asset management
Example) Investment in properties located in core areas but occupied by low credit tenants
Investment in distressed assets and add value through repositioning
Example) Acquire under-valued assets requiring heavy CAPEX spending and find better use for the assets
Investment in highly distressed and/or underperforming properties to generate the highest level of return through significant overhaul of the properties
Example) Investment in large-scale complex development projects and ground-up developments