Nuveen sees growing institutional opportunity in Korea's rental housing
Global asset manager Nuveen sees Korea's housing market becoming increasingly accessible to institutional capital as the country's traditional lump-sum deposit system gradually gives way to monthly rents. "It's becoming more of an institutional market ... more akin to what you see in the U.S., with monthly rental payments," Chad Phillips, global head of Nuveen Real Estate, said at a press…
Global asset manager Nuveen anticipates a growing influx of institutional capital into Korea's housing market. As the traditional lump-sum deposit system yields to monthly rental payments, the country's property sector is becoming more akin to that of the United States, according to Chad Phillips, Nuveen's global head of Real Estate.
Recently, Nuveen has made its first investment in Korea's residential sector. In a partnership with Korean startup Weave Living, the firm acquired a property near Dongdaemun History & Culture Park Station in Seoul for approximately 22.5 billion won ($16.72 million). This property will be transformed into a 62-unit serviced apartment complex, slated to open early next year.
This marks Nuveen's entry into Korea's residential real estate market, which it first explored in 2019 through a logistics investment in Namyangju, Gyeonggi Province. Prior to that, the asset manager expanded its presence in Korean real estate by acquiring logistics facilities in Uiwang and Ilsan. Despite the growing institutional interest in Korea's housing market, Nuveen remains optimistic about the future.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
