IGIS and Koramco Asset Management Selected as GPs for Military Mutual Aid Association Real Estate Blind Fund

500 Billion Won Allocated to Each Fund

The Military Mutual Aid Association has selected IGIS Asset Management and Koramco Asset Management as the final managers for its domestic real estate development blind fund investment project.

According to the investment banking industry on September 2, the Military Mutual Aid Association decided to invest a total of 100 billion won in two domestic real estate development blind fund managers on this day. Each fund will be allocated 50 billion won, and the minimum total amount to be raised for each fund is 100 billion won. The fund registration must be completed within six months from the date of notification of manager selection, and the fund maturity is within eight years (with possible extension within three years).

The managers will operate assets through development projects or value-add asset equity and loan investments in the Seoul metropolitan area or major metropolitan cities. The types of development projects include office buildings, logistics centers, residential facilities, and mixed-use complexes.

In line with the government's push to improve the real estate project financing (PF) system, the Military Mutual Aid Association has been conducting a selection process for development-type blind fund managers investing in real estate development projects since May. A total of 21 managers applied, resulting in a competition ratio of 10.5 to 1. The shortlist included Mirae Asset Global Investments, IGIS Asset Management (with KB Securities as Co-GP), JR AMC, Capstone Asset Management, Koramco REITs Management & Trust, and Koramco Asset Management.