Korea Post has opened tender for a 500 billion won (US$342 million) core and core plus domestic real estate fund mandate.
Korea Post will hire an asset manager for the mandate. The fund will invest in logistics facilities and commercial properties in Seoul and other metropolitan areas across the country. It should also allocate no less than 50% of total assets to office buildings, the government postal agency says in a request for proposals on March 19.
The fund’s targeted internal rate of return is over 8% with a 12-year maturity.
Korea Post will hire the manager for a two-year term with a one-year extension subject to the fund’s performance.
Managers bidding on the mandate are required to have at least three dedicated investment and management staff for the fund.
Applications will open by the end of March and Korea Post will hire the manager in May.
Korea Post has around 150 trillion won of assets under management.