Tishman Speyer announced the second closing of its Korea Living Venture (KLV). This financing round secured capital commitments of USD 75 million from a German pension fund. This increases the fund's total committed equity to USD 395 million. This latest commitment complements the first closing, in which Tishman Speyer had already received USD 300 million from APG Asset Management N.V. (APG) and Bouwinvest. Including Tishman Speyer's equity contribution of USD 20 million, the company thus reaches its initial target volume of USD 400 million.
The total investment volume, including planned debt financing, is expected to exceed USD 800 million. This ongoing momentum in capital raising reflects the confidence of institutional investors in Tishman Speyer and in the Korean rental housing sector. This market is one of the fastest-expanding in the multi-family sector in Asia.
Focus and Strategy of the KLV Fund
The KLV fund focuses on residential properties near key transport hubs, offering good connectivity to business districts and university campuses in Seoul, Incheon, Gyeonggi-do, as well as other high-growth areas in Korea's capital region. Leveraging Tishman Speyer's expertise in value creation and placemaking, the fund primarily targets existing residential properties with value-add potential. Simultaneously, a selective involvement in development projects is maintained. This integrated approach aims to establish a diversified portfolio of high-quality residential properties, combining short-term stability with long-term growth.
The fund's first acquisition occurred in August 2026 with the purchase of "Songdo CoStay". This fully leased residential property comprises 411 units and is located in Songdo, Incheon, South Korea. The nine-storey building is situated in the heart of the Songdo International Business District, a location with several universities and approximately 70 biotechnology and life sciences companies. The property offers furnished residential units and a range of communal facilities.
Market Dynamics and Global Orientation
Seoul is experiencing a significantly increased demand for rental properties, driven by structural socio-economic factors. These include rising housing costs, a growing number of single-person households, and an increase in foreign residents and international students. These dynamics contribute to the long-term depth and resilience of the local rental housing market. Graham Mackie, Head of Pan-Asia at Tishman Speyer, stated that the second closing of the KLV fund reflects investors' continued conviction in the Korean residential real estate sector and ideally positions Tishman Speyer to expand its high-quality and diversified residential property portfolio in the Greater Seoul area.
The investment vehicle is part of Tishman Speyer's global diversification strategy, which prioritises investments across various asset classes and geographical regions. Since 2023, Tishman Speyer has acquired approximately 3,800 residential units in 13 housing complexes across three countries and ten states. During the same period, construction began or was completed on approximately 4,100 rental apartments. The residential development pipeline currently comprises 7,400 units.
