HUG Begins Asset Management for Public-Supported Private Rental REITs Project

[Asia Economy Reporter Ryu Tae-min] The Korea Housing & Urban Guarantee Corporation (HUG) announced on the 2nd that it will commence asset management operations for the 'Hub REITs (MoREITs),' which oversees the public-supported private rental REITs projects funded by the Housing and Urban Fund.

Public-supported private rental REITs are real estate investment trusts jointly funded by the fund and private businesses to supply rental housing, with their actual operations carried out by asset management companies (AMCs) possessing specialized expertise.

To date, the government has introduced a 'parent-subsidiary REIT structure' for efficient operation of public-supported private rental REITs and entrusted management to the Korea Land & Housing Corporation (LH). However, following the 'LH Innovation Plan' and other measures, the asset management duties of MoREITs will be fully assigned to HUG.

Accordingly, HUG will perform MoREITs asset management alongside its existing fund-dedicated operations, promoting a one-stop support system for rental REIT projects.

Kwon Hyung-taek, President of HUG, stated, “The commencement of MoREITs operations and the one-stop system improvement mark the first step toward becoming the hub for rental REIT projects.” He added, “We will continue to support the smooth progress of public-supported private rental REIT projects through close communication among stakeholders and ongoing institutional improvements.”

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