Dutch pension manager APG and South Korea's National Pension Service are partnering in asset management to seek economies of scale in infrastructure and private real estate investments.
APG, a Heerlen-based firm with €536 billion ($627.8 billion) in assets, and NPS, a Jeonju-based national pension fund overseeing 750 trillion won ($653.6 billion) in retirement assets, in a joint news release, said their goal is to "gain access to attractive investments worldwide, at better conditions and with more influence and governance rights."
The institutional giants said they will focus on large infrastructure and private real estate projects — with two such investments already made.
In September, the two, together with Allianz, invested hundreds of millions of dollars in a fund operated by student accommodation provider Scape Australia. In April, APG, NPS and Swiss Life Asset Managers announced an agreement to acquire an 81.1% stake in Portuguese toll road heavyweight Brisa for more than €2.4 billion.
The partnership will give APG and NPS access "to attractive investment opportunities which would be difficult and more expensive to realize if acting alone," Ronald Wuijster, a member of APG Group's executive board, said in the release.
Joon Ahn, chief investment officer at NPS, in the same release stressed the need for NPS to "diversify its deal sourcing channel and reinforce competition in securing investment opportunities in quality real assets."
Both executives left open the possibility of expanding their circle of partnerships further in coming years.