POBA earmarks US$120m for US housing development fund
The US$11 billion Public Officials Benefit Association (POBA), a public pension fund in South Korea, is planning a capital injection of US$120 million in a US$600 million US single-family housing development fund managed by JPMorgan Asset Management.
According to The Korea Economic Daily, a number of US institutional investors have signed on to make joint investments in single-family rental homes across the country through the fund.
The fund has a build-to-core strategy and will look to maintain a 50 percent loan-to-value ratio after housing development is completed, according to the Financial News.
POBA is diversifying into the US single-family housing development market, which is seen as a relative safe haven during an economic downturn, following its investments in multifamily homes in the United States and Japan, notes The Korea Economic Daily.
A POBA source told The Korea Economic Daily that POBA’s experience inv