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Korean Investment Bank To Spend $500M In JV With Tishman Speyer

Tishman Speyer CEO Rob Speyer at the 120th Real Estate Board of New York Banquet in 2016.

The slow-moving train wreck happening at China's Evergrande Group may have the commercial real estate industry cooling on Chinese capital, but there is still plenty of money coming out of Asia.

Hana Financial Group, a South Korean investment bank with over $390B in assets under management, has signed a memorandum of understanding to invest up to $500M in equity into commercial real estate deals sponsored by Tishman Speyer, the companies announced Wednesday. The joint venture has not limited its type or location of investments, with the announcement stating that asset classes of various types across the U.S., Europe and Asia will be considered.

One distinguishing factor that Tishman will be focusing on when investing HFG's capital is whether a property fits in with the principles of environmental, social and governance best practices, or ESG, the announcement stated. 

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,” Tishman Speyer President and CEO Rob Speyer said in a statement provided with the press release. “This joint platform will be a springboard for our collective mission.”

The two companies previously interacted when HFG purchased an office building in Paris fully leased to Bristol Myers Squibb for $194M in 2019, Real Estate Weekly reports. The announcement did not disclose how much capital Tishman will be contributing toward the JV's investments, nor did it specify how much of HFG's equity contribution will be leveraged to increase the JV's purchasing power.

Outbound commercial real estate investment from South Korean firms decreased by 39% from 2019 to 2020 as a result of the coronavirus pandemic, according to CBRE, but the U.S. was a major outlier within that trend. Capital flows from South Korea into the U.S. increased by 88% from 2019 to 2020 to $5.2B, passing Germany to become the second-biggest foreign investor for U.S. real estate behind Canada, according to Real Capital Analytics data