Canada Pension Plan Investment Board (CPP Investments) has entered into a partnership to invest KRW500bn (β¬284m) in hospitality assets in Korea.
The Canadian investor will hold a 95% interest in the partnership alongside BlueCove Investment, a Korean hospitality-focused asset manager, which will own the remaining 5%.
It marks CPP Investmentsβ first direct investment in Koreaβs hospitality sector.
The partnership will work with established global hotel operators while acquiring and repositioning hotel assets across Seoul.
CPP Investments has committed up to KRW119bn to seed the ventureβs initial projects.
βKorea represents a compelling next step in CPP Investmentsβ hospitality strategy in the Asia-Pacific region, building on our recent hospitality investment in Japan,β said Gilles Chow, head of real estate for Asia-Pacific at CPP Investments.
βKoreaβs hospitality market is supported by strong domestic demand and growing inbound tourism. Together, these dynamics position the partnership to capture the sectorβs continued growth and deliver attractive longβterm returns for the CPP fund.β
Esby Kim, CEO of BlueCove Investment, said: βWe see strong momentum in Koreaβs hospitality market. By bringing together CPP Investmentsβ global capital and insights and BlueCoveβs on-the-ground expertise, we are well positioned to optimise both existing and new hospitality assets across the country. Together, we look forward to building a portfolio that delivers lasting value.β
To read the latest ΒιΆΉΣ³» Real Assets magazine click here.
