South Korea’s Public Officials Benefit Association (POBA) plans to invest 150 billion won ($108.5 million) in preferred stocks for office properties in Seoul and Pangyo, according to The Korea Economic Daily.
POBA is committing to Seoul-based Koramco REITs Management and Trust Co. for the preferred stocks. Koramco will invest the funds in offices with a floor area of more than 16,528 square meters (177,905 square feet) in Seoul’s Gangnam Business District and in offices with at least double that floor area in Pangyo and other neighborhoods.
POBA is putting its faith in preferred stocks with at least 6 percent of annual dividends for 10 years, with the expectation the value of preferred shares will rise when interest rates fall.
