The National Pension Service has marked its expansion into non-traditional real estate markets through KRW 2.3 trillion investment in niche real estate sectors that offer strong growth potential such as student housing. 

The NPS Investment Management (Executive Fund Director & Chief Investment Officer Seo Won Joo) announced today that a combined total of KRW 2.3 trillion has been invested in global GP stake, single family rental in the U.K., and student housing and build-to-rent strategy in Australia. 

This represents a meaningful milestone as it is the first investment made by the Real Estate Platform Investment Team established last year. Starting with this investment, the NPS will continue to invest in niche markets that have a low weight in its portfolio but offer the potential for long-term secular growth, such as data centers, last-mile logistics, senior housing, single family rentals, and student housing. 

The Real Estate Platform Investment Team, which led the investment, was formed in 2024 to further diversify its portfolio and investment return sources, as well as to adapt to rapidly evolving global real estate market trends in a timely manner. Since the launch of the team, the NPS has been actively seeking opportunities in non-traditional areas including GP stake, Proptech, and Listed Real Estate.

GP stake, one of the key strategies of the team, involves investing primarily in small and mid-sized asset managers with long-term growth potential. Through strategic partnership with investment target companies, the NPS will focus on creating a win-win structure that provides bespoke solutions while meeting its long-term real estate investment goal.

Proptech is another area of the team’s focus with an intention to improve the overall portfolio’s return aspiration by applying the latest technology to its real estate portfolio.

Seo Won Joo, Executive Fund Director & Chief Investment Officer, said: “With the NPS’ extensive investment spectrum across the private and listed real estate market, we will continue to find ways to create additional value through active investment strategies including M&As and IPOs going forward.”

NPS Doubles Down Non-traditional Real Estate Investments, Committed KRW 2.3tn in 2024