Korea’s KB Asset Management (KBAM) has entered into a strategic relationship with Bridge Investment Group intended to strengthen its overseas real estate management and investment capabilities and provide additional opportunities for Bridge to raise capital in Korea.
This relationship will provide KBAM opportunities to expand and strengthen its overseas real estate management capacities.
KBAM plans to enhance its deal-sourcing capabilities by utilizing Bridge’s real estate investment network across the U.S. and secure joint investment opportunities.
Moreover, KBAM expects to grow operational expertise in the U.S. by collaborating on screening and due diligence processes of U.S. investments as well as exchanging human resources with Bridge.
As part of their strategic relationship, Bridge and KBAM agreed to use commercially reasonable efforts to identify equity capital commitments by KBAM across the Bridge’s funds of at least $1 billion over the next four years, including expected commitments to multifamily and single-family rental strategies, and additional commitments from third-party investors other than the KBAM of at least $2 billion over the next four years (in each case, representing non-binding targets agreed between the parties). The two companies will periodically evaluate their strategic relationship status and seek to discover additional business cooperation opportunities.
In particular, KBAM plans to actively utilize Bridge’s managed funds, including initial investments in newly launched funds, to diversify KBAM’s overseas real estate portfolio and further improve mid- to long-term returns.
KBAM and Bridge will also utilize KBAM’s wide Korean domestic fund sales organization to develop and sell customized foreign real estate products for domestic individual investors.
“Bridge Investment Group has long-established its asset management expertise, demonstrating excellent profit generation through asset value increase,” one of the KBAM officials said. “We decided that Bridge is the right strategic partner for KBAM’s global expansion in asset management capabilities as well as providing quality real estate products for investors in Korea through this collaboration with KB Financial Group.”
“We are excited to team up with KBAM to continue to deliver attractive investment opportunities to a key Korean investor base,” said Seunghwan Lee, Senior Managing Director, Asia, for Bridge. “Their reputation and expertise will deepen Bridge’s exposure in Korea and increase our penetration of this core market in Asia.”