Tishman Speyer's Korea Living Venture Hits $395M in Equity Commitments

Tishman Speyer announced the second closing of its Korea Living Venture fund on Monday, bringing total equity commitments to $395 million. The combined capital effectively achieves the firm's initial $400 million fundraising target and is expected to support more than $800 million in total investment capacity when leveraged with anticipated financing.

Graham Mackie of Tishman Speyer said, "This second closing of our KLV fund reflects continued investor conviction in Korea's living sector." The fund has already begun deploying capital, completing its first acquisition in August 2026.

Capital deployment begins with first acquisition

The fund's first investment was the purchase of Songdo CoStay, a stabilized 411-unit residential asset located at 271 Harmony-ro in Incheon's Songdo International Business District. No purchase price or seller was disclosed for the transaction. Market sources indicated Tishman Speyer partnered with Seoul-based Gravity Asset Management on the deal.

Fund strategy targets value-add residential assets

KLV is focused on building a diversified portfolio of residential properties across the Seoul Metropolitan Area. Its strategy primarily targets existing living assets with opportunities for value enhancement. The fund maintains selective exposure to development projects.

Target assets are typically located near major transportation hubs with access to business districts and university campuses. Key target locations include Seoul, Incheon, Gyeonggi-do, and other high-growth neighborhoods throughout the capital region.

Investor base includes Dutch and German pension funds

The fund's anchor investors are Dutch pension giants APG Asset Management and Bouwinvest, which committed a combined $300 million in the first closing. The recent second closing was anchored by a $75 million commitment from an unnamed German pension fund investor.

Market fundamentals support rental demand in Seoul

Tishman Speyer cites structural demographic and economic shifts as key drivers for its strategy. The firm points to rising housing costs, significant growth in single-person households, and an expanding population of foreign residents and international students in Seoul.

Judy Jang noted, "Korea's rental housing market has historically been relatively fragmented and less institutionalised than some other major markets in the region." This dynamic is seen as creating an opportunity for institutional capital.

Tishman Speyer expects KLV’s $395 million in equity commitments to support more than $800 million in total investment capacity when anticipated financing is included.