Tishman Speyer Raises $300M From APG, Bouwinvest for Korea Living Venture

Tishman Speyer has reached a first closing of its Korea Living Venture after securing $300 million in equity commitments from Dutch pension giants APG and Bouwinvest, as the US developer takes aim at South Korea’s expanding rental housing market.

The New York-based builder and fund manager announced Thursday that the vehicle is targeting $400 million in total equity commitments, which would provide more than $800 million in investment capacity including anticipated financing. 

KLV is focused on acquiring, repositioning and developing multi-family and accommodation assets in Seoul and surrounding districts, marking Tishman Speyer’s first dedicated South Korea real estate strategy.

“The Korea living sector represents a large but under-institutionalised opportunity, fuelled by growing demand and constrained supply,” said Graham Mackie, Tishman Speyer’s head of pan-Asia. “This strategy allows us to scale our presence in a high-growth market while further diversifying Tishman Speyer’s global portfolio.”

Pension Partners

KLV will target assets near major transport hubs with convenient access to business districts and university campuses in Seoul, Icheon, Gyeonggi province and other high-growth areas across the capital region.

The strategy focuses primarily on existing living assets with value enhancement opportunities, while retaining selective exposure to development projects, with Tishman Speyer aiming to build a diversified portfolio of institutional-grade rental housing.

APG, which manages €601 billion ($699 billion) in assets on behalf of Dutch pension fund ABP, said the Korean rental housing market fits its approach to developed-market opportunities in Asia, where changing demographics and rising demand for professionally managed accommodation are creating long-term investment themes.

Bouwinvest, the €17.8 billion Dutch real estate investment manager, is joining KLV as part of its performance strategy, with the firm having built global exposure to residential sectors on behalf of pension clients.

While Tishman Speyer has yet to announce any owned development projects in South Korea, the family-controlled firm has been entrusted with managing the National Pension Service’s real estate investment assets since 2011, and since 2021 has overseen the Korean pension giant’s $1.5 billion separately managed account targeting US properties.

The Manhattan-based developer opened a Seoul office in 2022 and last year launched a liaison office in the southwestern city of Jeonju, home to NPS, with that outpost aimed at providing strategic support to the pension fund.

Tishman Speyer’s previous Asia Pacific efforts have centred on Shanghai, where the company developed two mixed-use megaprojects: Crystal Plaza in Pudong district and The Springs in Yangpu district. Founded in 1978, privately held Tishman Speyer has acquired, developed and operated 600 properties with a combined value of $138 billion, including New York’s Rockefeller Center, where the firm is headquartered.

Foreign Flows

KLV’s launch comes during a busy week for overseas institutional capital in South Korea, with the Canada Pension Plan Investment Board announcing Tuesday a $329 million hotel partnership with Seoul-based BlueCove Investment to acquire and reposition hospitality assets in the country.

On Thursday, Canada’s Brookfield told local media that it plans to boost its South Korea investments to KRW 30 trillion ($19 billion) by 2030 from KRW 17 trillion currently, with the asset manager pointing to opportunities in AI infrastructure including data centres.

Brookfield’s Korean properties include Seoul’s International Finance Centre complex, where the Canadian giant in 2024 sold the Conrad hotel to ARA Asset Management’s Korean unit for $300 million.

Late last year Brookfield sold the Cheongna Logistics Center in Incheon to KKR for $692 million, marking South Korea’s largest single-asset logistics deal and handing the Canadian manager a gain after less than three years of ownership.