Tishman Speyer and Korea’s Hana Launch $500M Global Property Fund

Tishman Speyer has joined forces with South Korea’s Hana Financial Group to set up a $500 million fund for co-investing in the US developer’s real estate projects in the US, Europe and Asia.

Under the strategic partnership, HFG will deploy equity capital of up to $500 million over the next two years in backing Tishman projects in a variety of asset classes, the companies said Wednesday in a release after president and CEO Rob Speyer and key Hana executives signed a memorandum of understanding.

“Hana Financial Group and Tishman Speyer share a passion for projects that drive innovation, support local communities and improve the quality of life for people around the globe,” Speyer said. “This joint platform will be a springboard for our collective mission.”

The agreement links Hana Financial’s $390 billion in assets to Tishman Speyer’s experience operating in nine countries on four continents after South Korea ranked as the second-largest source of Asian investment in global real estate opportunities last year with over $6 billion in acquisitions, according to research from CBRE.

Happiness for Everyone

With Korean investors stepping up their cross-border property buys in recent years, Hana turned to Tishman Speyer for an opportunity in March 2019 when it picked up a Paris office building from the Manhattan-based firm for $194 million.

Seoul-based REIT manager JR AMC acquired Le Cristalia, an eight-storey, large-floorplate office building in the western suburbs of Paris, on HFG’s behalf, according to Korean press accounts at the time.

In seeking future opportunities, HFG will draw on Tishman Speyer’s resources and experience as a developer, operator and investment manager in 28 markets across the US, Europe, Asia and Latin America. When evaluating potential bets, Tishman Speyer and HFG will emphasise opportunities that promote innovation and align with environmental, social and governance goals.

“Tishman Speyer is a world-class company with extensive experience investing in real estate projects in cooperation with many of the leading global institutional investors,” said Jihoon Kang, head of HFG’s global strategy team. “This MOU will open the door for Hana Financial Group to strengthen its investment capabilities in the ESG sector and contribute to the group’s efforts to achieve its vision of protecting the environment and of providing happiness to all members of our society.”

Going Places

Founded in 1971, Seoul-based HFG has shown a willingness to look far afield for investment opportunities, including with several overseas plays during the past year.

In the closing days of 2020, HFG’s fund management division acquired a 95 percent interest in 2+U, a 38-storey office and retail tower in Seattle, from Swedish developer Skanska for $669 million, in one of last year’s largest acquisitions of a single US property asset.

In May of this year, Hana teamed up with fellow Korean firm IGIS Asset Management to purchase a 49 percent stake in the Washington DC headquarters of mortgage lender Fannie Mae from Carr Properties for $223 million. Later that month, Hana Alternative Asset Management beat out 16 Japanese bidders to acquire a logistics centre in Osaka for $135 million.

Tishman Speyer, meanwhile, has concentrated its Asia Pacific efforts on two large mixed-use Shanghai projects: Crystal Plaza, where last year the firm sold an entire office tower to the beauty products company of actress Zhang Ting for $248 million; and The Springs, where TikTok maker ByteDance acquired a combined 2.55 million square feet (236,903 square metres) of office and retail space in mid-2021.

Founded in 1978, privately held Tishman Speyer has acquired, developed and operated 453 properties with a combined value of $113 billion, including New York’s Rockefeller Center, where the firm is headquartered.