Korea Land & Housing Corporation (LH) said on the 22nd it selected Koramco asset trust and KOREIT as preferred bidders for the role of asset management company (AMC) to operate the "project financing (PF) advancement priming development anchor REITs."
Under the project, to stabilize the real estate development market and boost the construction economy, development anchor REITs funded by LH and the private sector will select and invest in strong business sites at the bridge loan (short-term pre-groundbreaking loan) stage, then recoup funds when the main PF is executed.
LH held a public call on July 31 to select an AMC and evaluated capabilities including private investor fundraising and the size of investment commitments, the ability to source target business sites, and REITs management strategies.
Koramco REITs Management and Trust and KOREIT, selected as preferred bidders, must submit all letters of commitment (LOC) for the proposed commitment amounts by each applicant within 25 business days from the date of notification.
LH will make the final AMC selection in November and support related procedures so the REITs can be established within the year. It plans to contribute 200 billion won to the established REITs.
The established REITs will identify and select investment targets from among business sites, including the business sites proposed together with the AMC's public application (seven sites, totaling 5.8 trillion won in project costs), and plan to deploy investment funds starting in the first half of 2026.
Target business sites are those that meet the business site selection guidelines presented by the Ministry of Land, Infrastructure and Transport and LH among business sites experiencing difficulties raising bridge loan funds at the land acquisition stage. Final decisions will be made through the REITs' own investment review committee, among others.
LH President Lee Han-jun said, "The development anchor REITs will serve as a priming role for private funding for business sites with strong business conditions but difficulty raising funds," adding, "We will continue to do our best to revitalize the construction economy and expand housing supply."