Tishman Speyer announced the first closing of its Korea Living Venture (KLV), securing $300 million in third-party equity commitments from two blue chip European pension funds for a new fund dedicated to acquiring, repositioning and developing multifamily and accommodation properties throughout Seoul.
The commitments from APG Asset Management N.V. (APG) and Bouwinvest provide a strong foundation for KLV, which is targeting approximately $400 million of equity commitments which would represent more than $800 million of investment capacity, including anticipated financing. The strategy underscores growing institutional conviction in Korea’s rapidly expanding rental housing sector, one of the fastest-growing multifamily markets in Asia.
APG is one of the world’s largest pension investors, managing assets on behalf of Dutch pension fund, ABP.
Bouwinvest is a leading Dutch institutional real estate investment manager focused on creating long-term value through diversified investments across global residential and real estate sectors on behalf of pension clients.
KLV will target assets near major transportation hubs with convenient access to business districts and university campuses in Seoul, Icheon, Gyeonggi-do and other high-growth neighborhoods throughout the capital region.
Leveraging Tishman Speyer’s value-add and placemaking expertise, the fund primarily focuses on existing living assets with value enhancement opportunities, while maintaining selective exposure to development projects. This integrated approach balances near-term stability with long-term growth, enabling KLV to assemble a diversified portfolio of high-quality living assets.
Seoul is experiencing a boom in rental demand, underpinned by structural socio-economic shifts such as rising housing costs, increasing single-person households and growing numbers of foreign residents and international students. Together, these dynamics are contributing to the long-term depth and resilience of the city’s rental market.
“The Korea living sector represents a large but under-institutionalized opportunity, fueled by growing demand and constrained supply,” said Tishman Speyer’s Head of pan-Asia, Graham Mackie. “This strategy allows us to scale our presence in a high-growth market while further diversifying Tishman Speyer’s global portfolio.”
Joelin Ma, senior director real estate at APG, commented, “Korea’s living sector is a strong example of the structural opportunities we are targeting across Asia’s developed markets. Demographic shifts, rising rental demand and the growing adoption of professionally managed accommodation continues to support strong long-term fundamentals and we see this as an attractive way to access resilient, income-generating real estate exposure in the region. Our partnership with Tishman Speyer and Bouwinvest combines strong local execution with structural flexibility, including a potential pathway towards an open-ended core vehicle, in line with APG’s long term approach to core real estate investing.”
Robert Koot, director Asia-Pacific investments at Bouwinvest, commented, “Our Korea Living strategy reflects our strong conviction in the long-term fundamentals of one of Asia’s most dynamic and institutionally maturing residential markets. Building on our global experience in the living sector, we believe that partnering with APG and Tishman Speyer positions us very well to create a high-quality, scalable portfolio. As part of our performance strategy, we aim to contribute to the evolution of urban living by delivering sustainable, future-ready housing solutions that meet the needs of modern Korean households, while generating resilient, long-term returns for our client.”
Jorrit Sennema, senior portfolio manager at Bouwinvest, commented, “Seoul’s residential market is at an important inflection point. A significant part of the existing housing stock is ageing and no longer aligned with the needs of today’s urban population. At the same time, the rapid growth of single-person households is fundamentally reshaping demand, creating a clear need for well-designed, professionally managed living solutions. This imbalance presents a compelling opportunity to deliver modern, high-quality housing that better reflects how people live today, while driving the continued institutionalisation of the sector.”
The vehicle further builds upon Tishman Speyer’s continued global diversification strategy, which prioritizes investments in a widening range of asset classes and geographies.
