South Korea’s Construction Workers Mutual Aid Association (CWMAA) is seeking bids for a 120 billion won (US$81 million) domestic real estate loan mandate.
The investment will be in the form of an eight-year blind fund targeting an annual return of 5.2%, with 65% allocated to collateral loans, according to the group’s request for proposal on January 15.
Two asset management firms will be appointed for the mandate, one to manage 70 billion won and the other to manage 50 billion won.
Firms bidding on the tender must have been established for at least three years and have a track record of managing Korean real estate loan funds.
Applications are open until January 30 and the winning bidders are expected to be announced in early March.
Seoul-based CWMAA provides welfare programmes and retirement savings services for 5.5 million construction workers. The group has around 4.6 trillion won of assets.
