Construction Workers Mutual Aid Association Invests 200 Billion KRW in Real Estate Loans

Two Blind Fund GPs to Be Selected
For Asset Managers with Over 3 Years of Operation

[Asia Economy Reporter Kwangho Lee] The Construction Workers’ Mutual Aid Association will invest 200 billion KRW in domestic real estate loans.

According to the investment banking (IB) industry on the 8th, the Construction Workers’ Mutual Aid Association plans to select two general partners (GPs) for domestic real estate loan-type blind funds. It will invest a total of 200 billion KRW, with 100 billion KRW allocated to each GP. The investment will focus purely on senior domestic real estate loans such as secured loans, project financing (PF) loans, and bridge loans.

More than 70% of the loan investments will be composed of senior loans with a loan-to-value (LTV) ratio of 65% or less. For example, investment guidelines will be provided that limit the LTV ratio to 80% or less for secured loans, 70% or less for PF loans, and 65% or less for bridge loans.

The Construction Workers’ Mutual Aid Association will receive proposals on the 18th. The target candidates are asset managers who have been established for more than three years. The final GPs will be selected by early November. The target return rate is 6.0% or higher after fees, with an investment period within three years. The fund maturity is within seven years.