Koramco Asset Management Launches 134 Billion KRW Fund Investing in Pre-IPO REITs

[Asia Economy Reporter Minji Lee] Coramco Asset Management announced on the 28th that it has established two blind funds investing in REITs scheduled for listing, raising a total of 134 billion KRW from institutional investors.

The blind funds set up by Coramco Asset Management are the ‘Coramco Pre-IPO Specialized Private Investment Trust No. 9 (hereinafter ‘Coramco Blind Fund No. 9’)’ and the ‘Coramco Public Offering Scheduled REITs Specialized Private Investment Trust No. 13 (hereinafter ‘Coramco Blind Fund No. 13’),’ both of which invest in REITs preparing for listing.

The total committed amount of ‘Coramco Blind Fund No. 9’ is 64 billion KRW, with more than 60% of the committed amount invested in the Pre-IPO of ‘Coramco Energy Plus REIT,’ which is scheduled to be listed in the second half of this year. The remaining approximately 40% of the investment funds are invested in REITs scheduled to be listed within one year, where high-quality tenants have committed to long-term leases for a certain period, enabling stable dividends above the target dividend yield. The fund’s operation period is about four years, aiming for an annual return rate in the 7% range.

‘Coramco Blind Fund No. 13’ has a similar structure to ‘Blind Fund No. 9’ but employs a more diverse investment strategy. It sets investment limits by stages?pre-listing, public offering phase, and post-listing?and makes phased investments to maximize returns. Through this, it aims to operate a total committed amount of 70 billion KRW over seven years and achieve an annual return of over 7%.

Coramco Asset Trust, the parent company of Coramco Asset Management, was selected on the 10th as the anchor REIT operator for a 450 billion KRW fund based on surplus funds from the Housing and Urban Fund. Combining this with Coramco Asset Management’s blind funds, the total committed amount invested in REITs scheduled for listing reaches approximately 585 billion KRW.

Lee Jaegil, Head of Multi-Asset Management at Coramco Asset Management, said, “This blind fund secures early investment opportunities targeting domestic listed REIT assets expected to experience significant growth, offering a structure that can expect stable dividends and capital gains. Based on stock investment and real estate management know-how, we plan to continuously launch differentiated products that can achieve mid-risk, mid-return plus alpha.” End.

This content was produced with the assistance of AI translation services.