NPS commits $800 mn to Almanac for strategic partnership

In 2024, the pension fund launched a real estate platform investment team

National Pension Service's Investment Management headquarters in Jeonju, North Jeolla Province
National Pension Service's Investment Management headquarters in Jeonju, North Jeolla Province
Byung-Hwa Ryu 1
2025-01-16 19:04:33 Hwahwa@hankyung.com
Real estate

The National Pension Service of Korea (NPS) has committed $800 million to Almanac Realty Investors, the private real estate investment arm of Neuberger Berman, to build a strategic partnership, Almanac said on Wednesday.

The world's No. 3 pension scheme will raise its commitment to Almanac to expand joint investments. 

“The $800 million strategic partnership will allow NPS to access a variety of real estate platform opportunities globally through Almanac's existing and future funds, as well as a dedicated SMA,” Almanac said in a press release.

SMA stands for a separately managed account.

Under the partnership, they will invest in real estate companies by providing growth capital, or acquiring minority stakes in them. They may also commit to a newly formed property investment vehicle. 

“As the real estate investment landscape evolves, platform investing has emerged as a transformative trend reshaping the industry,” Insub Park, senior portfolio manager of NPS’ real estate platform investment team, said in the press release. 

Their strategic partnership follows the 2024 launch of the NPS’ real estate platform investment team, dedicated to investing in real estate platforms and acquiring minority equity stakes in real estate investment managers.

In October, Kim Tae-hyun, chairman of the South Korean pension fund, said it will raise exposure to residential housing and data centers to take advantage of lower interest rates.

He said the NPS will allow its global office heads to take a more active role to speed up investment and partnership decisions, including buying equity stakes in asset management houses.

Write to Byung-Hwa Ryu at Hwahwa@hankyung.com
 

Yeonhee Kim edited this article.

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