From a standing start in 2010, South Korean investors became a global real estate investment powerhouse, dominating the list of big transactions in some of the world’s gateway cities.
But now, a series of very particular circumstances to do with travel bans, currency hedging and a scandal at a local hedge fund mean the cohort of acquisitive investors has had to put its deal-making on hold, or start looking at new markets — particularly the U.S.
“There is still a lot of capital wanting to invest overseas that isn’t satisfied with returns in the domestic market,” said Jonghan Kim, Cushman & Wakefield partner and head of the Korea Desk for EMEA Capital Markets. “But there are some issues today.”
The story of Korean outbound investment is a remarkable one. In 2010, Korean investors deployed just €622M ($733M) in European real estate, according to Real Capital Analytics. In the preceding years there had been a few one-off deals, such as pension…
Read the full story here.