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Korea fund Yellow Umbrella seeks bids for 400 billion won domestic REIT mandate

Yellow Umbrella
By Hui Ching-hoo   
April 7, 2022

South Korea’s government-sponsored Yellow Umbrella Mutual Aid Fund is seeking an unspecified number of asset managers for a 400 billion won (US$328 million) domestic real estate investment trust mandate with a three-year investment period.

It comprises a 300 billion won loan investment strategy with a target return of at least 5% per year, and a 100 billion won value-added and development equity strategy with a minimum target return of 6%.

The mandate is structured as a blind fund that invests in office, retail and logistics property projects in major cities, Yellow Umbrella says in its request for proposal published on the website of the Korea Financial Investment Association on April 5.

The blind fund is scheduled to be established by the end this year.

The RFP does not provide any details of minimum requirements for applicants other than that they must not have any record of violating laws and regulations over the past five years.

Applications are open until April 22 with evaluation and manager selection scheduled by the end of June.

Yellow Umbrella, which was established in 2007 to support the growth and development of small and mid-sized enterprises, doesn’t often outsource investments.

The fund’s last tender was in January 2021 when it sought managers for a 600 billion won foreign bond mandate. Like most Korean asset owners, it rarely announces tender results publicly.

Yellow Umbrella had 14.5 trillion won of assets as of March 2021.