Korea Investment Management Launches 'Korea Investment Tokyo Gioi-cho Office Real Estate Fund'

[Asia Economy Reporter Eunmo Koo] Korea Investment Management announced on the 23rd that it will launch the "Korea Investment Tokyo Kioicho Office Real Estate Investment Trust (Derivative Type)" (Korea Investment Tokyo Kioicho Real Estate Fund) on the 27th, investing in a newly constructed office building in the Chiyoda Ward area, one of the three central business districts (CBD) in Japan.

The Korea Investment Tokyo Kioicho Real Estate Fund is a closed-end fund with no early redemption allowed for five years and will be exclusively sold through Korea Investment & Securities from the 27th to the 31st. The minimum subscription amount is 5 million KRW, and the fund size is approximately 42.2 billion KRW (about 3.758 billion JPY).

The fund invests 100% equity in the newly constructed office building "Kioicho PREX," located in the Kojimachi area, the center of politics, culture, education, and commerce. It hedges currency risk at about 100% of the principal and 80% of dividends to reduce the risk of principal and interest loss due to exchange rate fluctuations. Kioicho PREX was completed in January last year and is a one-minute walk from Kojimachi Station and a five-minute walk from Hanzomon Station. Within a radius of about 1 km are the Imperial Palace, the Supreme Court, government offices, and the National Theatre of Japan.

Korea Investment Management conducted an on-site inspection in Japan at the end of January with top executives participating directly, and from May to the end of June, a two-month local professional due diligence was carried out involving law firms, insurance companies, accounting firms, and appraisal agencies.

Additionally, an "online live inspection" supplementing the existing on-site inspections was conducted last month. Due to the impact of COVID-19, which made free overseas inspections difficult, this additional measure for verifying investment properties involved local law offices, banks, and asset management personnel. The online live inspection connected Korea Investment’s headquarters and the local site in Japan in real time, sequentially checking the surrounding environment, building exterior, interior office spaces, elevators, parking lots, and other building facilities.

A Korea Investment Management official stated, "The Korea Investment Tokyo Kioicho Real Estate Fund is a strategic product of the company that has consistently achieved results in the Japanese real estate market and will be a good investment option for investors considering stable investments. In particular, the product verification through the industry's first online live inspection can serve as an opportunity to enhance customer investment trust in the COVID-19 era."

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