Korea Post Savings is searching for three global real estate fund managers to pursue co-investment opportunities focused on the U.S. mortgage market.
An RFP posted on the $60 billion Sejong-based asset owner's website Friday said Korea Post Savings will look to award roughly $150 million to each of three separately managed accounts focused on U.S. first mortgage co-investment opportunities.
Korea Post Savings will invest “at most” 50% of each of the minimum of five loans to be extended for each separately managed account, while selected managers should co-invest “at least 50%.”
The RFP said Korea Post Savings is targeting an internal rate of return of 3.8% or higher, gross of fees.
With regard to fees, the RFP said the fee paid to managers won't exceed 40 basis points per year of the outstanding invested capital.
The RFP can be found on Korea Post's website. Proposals are due by 5 p.m. Korea Standard Time on Sept. 2. Final selections will be announced in October, roughly 50 days following the application deadline.