INDUSTRY NEWS

South Korea targets London commercial property

The National Pension Service of Korea, South Korea’s vast state-backed pension fund, is the most recent of a slew of foreign investors to purchase commercial property in London while prices are still low.

NPS has joined up with property fund manager Rockspring in order to buy high-end properties in London. The fund as currently looking to acquire stakes in the region of £150 million and over, including retail and office space.

NPS presently has reserves of around $200 billion and aims to reach a fund size of $440 billion within three years, making it one of the largest pension funds in the world (the largest is Japan’s public pension fund, with around $1.2 trillion in reserves).

Eighteen months ago NPS stopped buying US government debt because the yield was too low, and the recent move into the UK property market is part of the fund’s move into more lucrative territory.

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