Blackstone, Principal Asset win Korea Post’s $150 mn mandates

Korea Post has awarded two real estate debt investment mandates worth $150 million to the Blackstone Group and Principal Asset Management, its savings unit said on July 4.

The state-run agency’s investment committee has recently decided to entrust $100 million to Blackstone’s blind-pool real estate debt fund and $50 million to Principal Asset’s to invest in mezzanine notes.

They were mandated to have US real estate debts account for at least half of their portfolios, with a maximum leverage of 50%.

Their average loan-to-value ratio should not exceed 80%, with a term of up to 10 years.

In April, Korea Post issued a request of proposal for the mandates for a target IRR of 7% per year.

By Hyunil Lee

hiuneal@hankyung.com