'1600 Jo Big Player' US Asset Management Firm "The Bottom is Over, Will Increase Investment in Korean Real Estate and Infrastructure"

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The U.S. asset management firm Nuveen, a 'big player' with assets under management (AUM) exceeding 1,600 trillion won, diagnosed that domestic and international real estate has bottomed out and announced plans to increase investment in domestic real estate.

Martin Davis, CEO of Natural Capital Global (far right), is speaking at the 'Real Asset Press Conference' hosted by Nubbin on the 2nd.
[Photo by Nubbin]

At the 'Real Assets Press Briefing' hosted by Nuveen on the 2nd at the FKI Tower in Yeouido, Seoul, Sean Lease, Nuveen Real Estate Americas Chief Investment Officer (CIO), said, "Although global real estate values have sharply declined over the past two years, we believe the market has hit the bottom and is entering a recovery phase." He added, "The real estate market is expected to soon reach a favorable investment timing, and practically necessary real estate will become a good investment destination." Global experts in real estate and real assets from Nuveen attended the briefing.

One of the representative good investment destinations was the domestic office market. CIO Sean Lease said, "Even during the global downturn, the Korean market showed a different pattern (escaping the decline)." Nuveen is increasing its domestic real estate investments, including acquiring prime properties in the Central Business District (CBD). Recently, it was selected as the preferred negotiator for the Jeongdong Building, which houses Kim & Chang law firm, and is finalizing the acquisition process. Additionally, Nuveen has shown significant interest in domestic logistics centers, having consecutively acquired centers in Namyangju in 2019, Uiwang in 2020, and Goyang last year.

Nuveen is an asset management firm under the U.S. Teachers Insurance and Annuity Association (TIAA). Its AUM reaches $1.2 trillion (approximately 1,600 trillion won). It manages institutional funds in over 1,300 locations across 32 countries worldwide. Alongside real estate, another core investment asset Nuveen is focusing on in the domestic market is infrastructure. In 2022, it established a joint venture (JV) with SK D&D for solar power investments. Beef Orso, Nuveen Infrastructure Global Head, said, "When investing in infrastructure, we focus on key sectors such as transportation, energy transition, environmental and social infrastructure, and Korea's solar projects are one such example." He added, "This can also contribute to Korea's net-zero (carbon neutrality) goals."

Jang Jae-ho, head of Nuveen Korea, said, "Nuveen plans to expand investments not only in solar power but also in various renewable energies such as onshore and offshore wind power." He added, "We will increase the number of employees at the Seoul office from five to eight to expand exchanges with domestic institutional investors."