South Korea\u2019s National Pension Service, the world\u2019s fifth-largest pension fund, will allocate more than $800 million to acquire overseas real estate this year, and will increase the proportion of its real estate investments that are in the United States, according to Reuters. This amount will approximately double the fund\u2019s 2007 investments in overseas real estate; NPS only began investing in foreign real estate in 2006. \u00a0Three weeks ago, the Financial Times reported that NPS had decided to no longer buy U.S. Treasuries, because of low yields. The newspaper quoted NPS head of global investments Kwag Dae-hwan as saying, \u201cIt is difficult to buy more U.S. Treasuries because the portion of our Treasury investment is already too big and Treasury yields have fallen a lot.\u2026 We need to diversify our portfolio.\u201d \u00a0According to the Reuters story, NPS is moving into overseas properties because the global slowdown offers opportunities to buy assets relatively inexpensively and achieve higher returns. \u00a0Dan Fasulo, managing director at Real Capital Analytics, told CPN that South Korea is roughly in the middle of the curve in starting to look at overseas real estate. Singapore was a leader in this, and other Asian nations are very likely to follow, he said. \u201cThere is no question that at some point the Asian countries would start to diversify into other asset classes\u2026. There\u2019s definitely a structural change in the way that [Asian] governments are thinking about their investments.\u201d\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
South Korea\u2019s National Pension Service, the world\u2019s fifth-largest pension fund, will allocate more than $800 million to acquire overseas real estate this year, and will increase the proportion of its real estate investments that are in the United States, according to Reuters. This amount will approximately double the fund\u2019s 2007 investments in overseas real estate;…<\/p>\n","protected":false},"author":1314,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37301],"tags":[],"class_list":["post-1003791398","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n