Real Estate Investment Trusts (REITs)
Real estate securitization as a means of raising capital is still in its early stages in Korea. Laws introducing the concepts of asset-backed and mortgaged backed securities were passed in 1999 and a real estate investment trust (REIT) law was passed in 2001. In 2004, the Collective Investment Asset Management Business Law (“CIAMBA”) was enacted which provided for real estate collective investment vehicles (“RECIVs”) which are now being introduced to the Korean real estate market.
The members of our REIT practice group are pioneers in the area of collective investment having advised the Korean government in drafting and amending the relevant acts and regulations. Since the very introduction of these laws, our REIT practice group has been specializing in the collective investment of real estate through real estate holding companies, real estate funds/trusts, project finance vehicles and similar special purpose vehicles. Our team has been active in numerous projects involving asset-backed securities and REITs and several attorneys regularly lecture on collective investment in Korea at the Lawyer Training Institute of the Korean Bar Association and the Judicial Research and Training Institute of the Korean Supreme Court.
• Advised on establishment, management and liquidation of KOCREF REITs 3,4,6,7,8, and 11 and NPS REIT 2;
• Advised on establishment and management of KOCRENPS, and Macquarie Central Office CR-REIT;
• Advised on establishment and operation of KOCREF ARIEF KOREA 1;
• Advised on establishment and operation PAMCO RETAIL 1;
• Advised on establishment and operation KR2 Development REIT transactions; and
• Established and managed PAMCO Asset Management Company.