Blackstone, Principal Asset win Korea Post’s $150 mn mandates
Jul 04, 2019 (Gmt+09:00)
Korea Post has awarded two real estate debt investment mandates worth $150 million to the Blackstone Group and Principal Asset Management, its savings unit said on July 4.
The state-run agency’s investment committee has recently decided to entrust $100 million to Blackstone’s blind-pool real estate debt fund and $50 million to Principal Asset’s to invest in mezzanine notes.
They were mandated to have US real estate debts account for at least half of their portfolios, with a maximum leverage of 50%.
Their average loan-to-value ratio should not exceed 80%, with a term of up to 10 years.
In April, Korea Post issued a request of proposal for the mandates for a target IRR of 7% per year.
In 2018, it invested 100 million euros ($113 million) in Europe’s value-add real estate investment funds, after committing $450 million to senior debt funds for commercial real estates in 2016.
By Hyunil Lee
hiuneal@hankyung.com
Yeonhee Kim edited this article
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