Koramco Signs SMA Agreement Worth Up to 80 Billion KRW with Fursys

Koramco Asset Trust announced on July 9 that it has signed an SMA (Separately Managed Account) agreement worth up to 80 billion KRW with Fursys, a leading office environment specialist in Korea. This marks the first strategic partnership between a real estate asset management company and an office environment specialist, and is significant as it establishes a new model of collaboration within the commercial real estate market.

Recently, the commercial real estate investment market has faced challenges in raising equity investment funds due to persistently high interest rates, economic slowdown, and reduced commitments from overseas pension funds and institutional investors. As liquidity tightens, both domestic and international major asset managers are increasingly missing out on investment opportunities. Despite attempts by large corporations to divest non-core assets, actual transactions have remained limited.

Through the SMA agreement with Fursys, Koramco has proactively secured up to 80 billion KRW in investment capital, enabling the company to more actively pursue investment opportunities and enhance transaction certainty. An SMA is a customized investment account managed individually according to the needs and strategies of a specific investor, and its use is expanding as it allows for efficient capital deployment and management.

Under the SMA agreement, Fursys will contribute acquisition funds to Koramco within the agreed limit, and Koramco will use these funds to acquire value-add office assets in major business districts in Seoul. Koramco will then carry out remodeling, lease management, and eventual asset sales. Fursys will contribute its expertise in space planning and construction, thereby enhancing both investment and operational efficiency. The partnership is expected to generate substantial synergy between the asset manager and the strategic investor.

Jung Seunghoe, CEO of Koramco Asset Trust, stated, "The SMA agreement with Fursys is more than just a means of raising capital; it is a new investment cooperation model that can simultaneously enhance spatial innovation and real estate asset value. We will continue to collaborate with diverse strategic partners to identify leading investment opportunities in both domestic and global real estate markets."

Koramco is a leading real estate finance company, holding the top market share in Korea's private REITs sector. As of last year, the company managed approximately 33.4 trillion KRW in real estate assets. Recently, it announced a vision to expand its assets under management (AUM) to 50 trillion KRW by 2028. Koramco has also restructured its organization to strengthen expertise in investment, funding, and asset management, and is focused on building an investor-centered management system.

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