[Asia Economy Reporter Kum Boryeong] KB Asset Management has launched a blind mezzanine private equity fund investing in income-generating real estate.
On the 6th, KB Asset Management announced the launch of the 'KB Loan-type Blind Specialized Investment Real Estate Fund No. 1.'
A KB Asset Management official explained, "A mezzanine fund investing in income-generating real estate refers to subordinated loans with moderate returns between senior loans and equity investments, aiming to reduce risk. Although it varies depending on the investment target, generally, senior loans investing in domestic real estate have low interest rates around 2.7%, so the demand from institutional investors wanting to invest in mezzanine such as subordinated loans is steadily increasing."
This fund is worth a total of 120 billion KRW, with beneficiaries including KB Financial Group affiliates and mutual aid associations. KB Asset Management also plans to invest some of its proprietary funds. As a blind fund, it will invest in domestic income-generating real estate such as offices and logistics over a total of 10 years until 2030.
Lee Hyunseung, CEO of KB Asset Management, said, "Blind funds are a common investment method in developed countries, and compared to general funds, they allow faster decision-making, making it easier to secure high-quality assets."
Since launching the Balhae Fund in 2006, KB Asset Management has been operating infrastructure blind funds such as renewable energy funds and BTL funds. In the real estate sector, it is managing various office blind funds and logistics blind funds.
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