#South Korea #Seoul #Neuberger Berman #NPS #Almanac Realty

NPS and Almanac Realty Investors Join Forces

The National Pension Service of Korea (NPS) and Almanac Realty Investors, a prominent private real estate investment arm of Neuberger Berman, have announced an important strategic partnership aimed at capitalizing on real estate platforms and general partner (GP) stakes investments across the globe.

This ambitious move involves a substantial commitment of $800 million, aimed at creating a dynamic investment trajectory that encompasses various managed vehicles designed for growth in the real estate sector. The partnership is not only about pooling financial resources but also about sharing expertise and strategies in navigating the complex landscape of global real estate investing. Their cooperative efforts mark a significant shift as they align their investment objectives to tap into new market opportunities.

Strategic Components of the Partnership

The collaboration is structured around three main components:
1. Anchor Commitments: NPS has made anchor commitments to Almanac’s flagship strategy that focuses on providing growth capital specifically to real estate operating companies, a crucial element for nurturing innovation and expansion in this sector.
2. Minority Stake Investments: In addition, NPS will commit funds to acquire minority equity stakes in various institutional real estate investment managers, thereby diversifying its investment portfolio and enhancing its influence in key market players.
3. Exclusive Advising Vehicle: An innovative aspect of this partnership is the establishment of a unique, dedicated advisory vehicle where Almanac will primarily assist NPS with transactions sourced by its own team, concentrating on platform-level opportunities and GP stakes.

Industry Evolution and Market Dynamics

In the context of a rapidly evolving real estate investment landscape, the partnership underscores a growing trend towards platform investing, noted by Insub Park, Senior Portfolio Manager of the Real Estate Platform Investment Team at NPS. By engaging in platform investments, both entities aim to optimize value creation and align with long-term strategic goals. The focus is not simply on financial returns but also on fostering relationships and building an investment portfolio that stands the test of time.

As Park indicates, “This approach is a transformative trend reshaping the industry,” emphasizing its importance in the long-term growth narrative of both partners. The mutual understanding of market dynamics and strategic foresight is anticipated to yield significant benefits for both parties.

Expertise and Experience

George Walker, the CEO of Neuberger Berman, reinforced the value of this partnership, describing private real estate as a vital investment avenue for their clients. He acknowledged the importance of their platform-level investment expertise and commitment to sourcing opportunities that not only meet the goals of NPS but also benefit their entire portfolio of clients.

The formation of NPS' Real Estate Platform Investment Team in 2024 signals its intention to innovate and lead in identifying and nurturing substantial real estate opportunities globally. This team’s mission reflects NPS's commitment to both established and emerging real estate platforms, and underscores the importance of recognizing minority interests in active real estate investment managers.

A Shared Vision for the Future

Matthew Kaplan, Chairman and Group Head of Almanac, expressed his enthusiasm for the partnership, highlighting the close alignment of perspectives between NPS and Almanac on real estate investment. The potential for both teams to leverage their decades of experience and robust industry networks bodes well for future collaborations.

Almanac has established itself as a leader in the real estate platform investment space since 1996, bringing invaluable experience to this partnership. Together, NPS and Almanac are poised to significantly impact the real estate platform market, supporting long-term growth through sound investment practices.

As the partnership unfolds, stakeholders can look forward to innovative strategies and enhanced investment opportunities that will not only benefit NPS but will also reinforce Almanac's position as a leader in the realm of real estate investments. With a shared commitment to excellence, transparency, and long-term success, this collaboration aims to set new benchmarks in the industry.

About the Partners

Almanac Realty Investors focuses on providing growth capital to both private and public real estate companies and has committed billions over its operational years. Meanwhile, the National Pension Service stands as one of the world's largest pension funds, with its substantial assets under management reflecting its commitment to sustainable investments.

This partnership marks a new chapter in global real estate investment, affirming the importance of collaboration in unlocking new opportunities in a complex market.