KB Asset Management Launches Private Banking Exclusive Private Overseas Real Estate Fund

[Asia Economy Reporter Junho Hwang] KB Asset Management will launch a private overseas real estate fund on the 9th.

The 'KB Private Solution General Private Real Estate Fund No. 1' is a fund of funds investing in the 'Starwood Real Estate Income Trust (SREIT)', the flagship fund of Starwood Capital Group, a U.S.-based real estate specialist. Established in December 2018, the SREIT fund has grown into a mega fund worth 29 trillion KRW (as of the end of March) due to inflows from global pension funds and major investors. This fund proactively invests in prime real estate in regions with clear income growth, and flexibly allocates assets according to economic conditions by increasing the proportion of residential properties with short lease renewal cycles considering inflation. As of March, most of the assets are invested in U.S. real estate, with 72% in residential, 13% in industrial, and 8% in office sectors.

The minimum subscription amount for this fund is 300 million KRW, and investors can choose between a currency-hedged type (H) and a USD-based NAV type (USD). The front-end sales commission is 1.0% of the payment amount, and the total management fee is 0.94% per annum. This fund will be available for subscription at KB Kookmin Bank PB counters from the 16th to the 20th.

Hong Seongpil, Head of Overseas Real Estate Management at KB Asset Management, stated, "With increased stock market volatility due to recent inflation, demand for investment in real assets is rising," adding, "We launched this fund to enable individual investors to easily invest in overseas real estate, which is difficult to invest in directly."

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