Mirae Asset Global Investments Wins Another Major Korea Post Real Estate Fund

Mirae Asset Global Investments has been selected as the management company for Korea Post's domestic real estate core strategy fund, which will manage more than 600 billion KRW in assets. With this, Mirae Asset Global Investments is establishing its third Korea Post domestic real estate core strategy blind fund, once again demonstrating its outstanding management capabilities.

According to the investment banking (IB) industry on April 29, Korea Post selected Mirae Asset Global Investments as the preferred negotiation partner for the management of its domestic real estate core strategy fund for Post Office Financial Services the previous day. Korea Post will conduct on-site due diligence and, after an investment review committee, will officially appoint Mirae Asset Global Investments as the fund manager.

Mirae Asset Global Investments believes that its success in the competition against Hana Alternative Asset Management and Koramco REITs Management & Trust is due to its deep understanding of Korea Post's core strategy blind funds.

In 2019, Mirae Asset Global Investments launched its first core strategy fund led by Korea Post, with a size of 250 billion KRW, investing in high-quality office assets such as State Tower Namsan and Shinhan L Tower, and achieving stable management performance. The current value of State Tower Namsan, which was acquired for 588 billion KRW, has reportedly risen by about 30% to around 785 billion KRW. Subsequently, the second core strategy blind fund, established in 2023 with a size of 500 billion KRW, is also showing excellent investment results by investing in large-scale, high-quality assets such as the LogisOne Yangji logistics center and Tower8 office building.

Korea Post plans to support around 500 billion KRW, which is 85% of the fund's target size, to establish a fund of at least 600 billion KRW. The investment targets are 'major office districts in Seoul and logistics facilities located in the Seoul metropolitan area,' with offices accounting for more than 50% of the portfolio. The investment period is set at within two years, and the fund's maturity is within 12 years. The target annualized internal rate of return (IRR) is up to 7%.

Expectations are high for Mirae Asset Global Investments, given the scale of this blind fund. Having launched Korea's first real estate fund in 2004, Mirae Asset Global Investments has 21 years of experience in commercial real estate investment and management. The company boasts proven results in core strategy-focused investments. Since 2015, the average net internal rate of return (Net IRR) for domestic core real estate assets that Mirae Asset Global Investments has either liquidated or is currently managing stands at 10.3%.

In particular, the company demonstrates overwhelming expertise in super-large prime asset classes. Currently, Mirae Asset Global Investments manages Mirae Asset Center One, Pangyo Tech One, and Kakao Pangyo Agit, each with a gross floor area of over 165,000 square meters, in major business districts. Due to the nature of large office buildings, leasing operations can be complex, but based on its extensive know-how in managing prime assets, the current average vacancy rate is only around 2%. Expectations are also rising for super-large assets currently under development, such as Seongsu Krafton Tower and Pangyo Sampyeong-dong 641.

Choi Changhoon, Vice Chairman of Mirae Asset Global Investments, stated, "As a core strategy specialist asset management company with an excellent track record and differentiated know-how, Mirae Asset Global Investments plans to target 'Super Core assets' with this third fund as well." He added, "Based on Korea's largest prime office portfolio, we will leverage our unique expertise and insights into prime assets to deliver outstanding performance."

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