Koramco and Korea Land Trust Selected as Preferred Negotiation Partners for PF Advancement Development Anchor REITs Operator

Korea Land and Housing Corporation (LH) announced on October 22 that it has selected Koramco Asset Trust and Korea Land Trust as the preferred negotiation partners to serve as asset management companies (AMCs) for the operation of the 'Project Financing (PF) Advancement Seed Development Anchor REITs.'

This project aims to stabilize the real estate development market and revitalize the construction industry. Development anchor REITs, jointly funded by LH and the private sector, will select outstanding projects at the bridge loan (pre-construction short-term loan) stage for investment, and then recover their funds when the main PF is executed.

The selected AMCs received high scores for their capabilities in attracting private investors, the scale of investment commitments, their ability to identify promising projects, and their REITs management strategies. Within 25 days of being notified of their selection, each applicant must submit all letters of commitment (LOC) for the committed amounts they proposed, excluding LH’s contribution.

LH plans to make the final selection of the AMCs in November and will support the necessary procedures so that the REITs can be established within the year. LH has decided to invest 200 billion won in the established REITs. The REITs, once established, will identify and select investment targets from among the seven projects (worth 5.8 trillion won) proposed by the AMCs during their public offering applications, as well as other projects, and begin executing investments starting in the first half of next year.

The investment targets will be projects that face difficulties in securing bridge loan funding at the land acquisition stage but meet the project selection guidelines set by the Ministry of Land, Infrastructure and Transport and LH. Final decisions will be made through the REITs’ own investment review committees. LH President Lee Hanjoon stated, "Although the business conditions are excellent, development anchor REITs will serve as a catalyst for private funding for projects that struggle with financing."

This content was produced with the assistance of AI translation services.