Global institutional investors have launched a new closed-end investment vehicle to capitalise on structural shifts in South Korea’s residential market. The Korea Living Venture (KLV), managed by real estate firm Tishman Speyer, has secured $300 million in third-party equity commitments at its first close.

Dutch pension providers APG Asset Management, investing on behalf of ABP, and Bouwinvest Real Estate Investors, managing the Asia-Pacific Mandate for bpfBOUW, have joined as cornerstone backers. The venture is targeting approximately $400 million in total equity commitments, which would lift its total initial investment capacity to roughly $650 million, and over $800 million when including anticipated financing.

The investment strategy focuses heavily on the capital region, targeting multifamily properties and accommodation assets in Seoul, Incheon and Gyeonggi-do. Investors are looking at locations near major transport hubs, prominent business districts and university campuses. The venture will combine core and core-plus acquisitions with value-add opportunities and selective development projects, with a strong focus on incorporating environmental, social and governance (ESG) standards.

Socio-economic changes in South Korea are altering traditional residential demand. Rising urban housing costs, a sharp increase in single-person households and a growing population of foreign residents and international students are driving a consistent need for rental properties. Meanwhile, much of the existing housing stock in Seoul is ageing and fails to meet modern occupant expectations.

Graham Mackie, Tishman Speyer’s Head of pan-Asia, said: “The Korea living sector represents a large but under-institutionalized opportunity, fueled by growing demand and constrained supply. This strategy allows us to scale our presence in a high-growth market while further diversifying Tishman Speyer’s global portfolio.”

Joelin Ma, Senior Director Real Estate at APG, comments: “Korea’s living sector is a strong example of the structural opportunities we are targeting across Asia’s developed markets. Demographic shifts, rising rental demand and the growing adoption of professionally managed accommodation continues to support strong long-term fundamentals, and we see this as an attractive way to access resilient, income-generating real estate exposure in the region. Our partnership with Tishman Speyer and Bouwinvest combines strong local execution with structural flexibility, including a potential pathway towards an openended core vehicle, in line with APG’s long term approach to core real estate investing.”

Robert Koot, Director Asia-Pacific Investments at Bouwinvest, comments: “Our Korea Living strategy reflects our strong conviction in the long-term fundamentals of one of Asia’s most dynamic and institutionally maturing residential markets. Building on our global experience in the living sector, we believe that partnering with APG and Tishman Speyer positions us very well to create a high-quality, scalable portfolio. As part of our performance strategy, we aim to contribute to the evolution of urban living by delivering sustainable, futureready housing solutions that meet the needs of modern Korean households, while generating resilient, long-term returns for our client.”

Jorrit Sennema, Sr Portfolio Manager at Bouwinvest, comments: “Seoul’s residential market is at an important inflection point. A significant part of the existing housing stock is ageing and no longer aligned with the needs of today’s urban population. At the same time, the rapid growth of single-person households is fundamentally reshaping demand, creating a clear need for well-designed, professionally managed living solutions. This imbalance presents a compelling opportunity to deliver modern, high-quality housing that better reflects how people live today, while driving the continued institutionalisation of the sector.”