South Korea’s Government Employees Pension Service (GEPS) is seeking bids for a 250 billion won (US$169 million) domestic real estate blind fund mandate.
The fund, which will have a ten-year maturity, will invest mainly in office, logistics, and data centre assets, adopting a core-plus strategy and targeting a minimum internal rate of return of 9%, according to the pension service’s request for proposal on April 27.
GEPS plans to hire a local asset management firm to manage the fund.
The winning bidder will be required to establish a dedicated real estate collective investment vehicle for the mandate.
Asset management firms bidding on the tender must have at least 500 billion won of domestic real estate assets, and should not been warned about any violations by supervisory authorities.
GEPS provides pension services for around 1.25 million members, with around 12.31 trillion won of assets.
