SEOUL, SOUTH KOREA – A major transaction in the Asian real estate investment sector is moving forward as Hillhouse Investment’s Rava Partners unit has been selected as the preferred bidder to acquire IGIS Asset Management, South Korea’s largest real estate investment firm.
The deal, valued at approximately W1.1 trillion ($748 million) for a 98.8% stake, marks a substantial acquisition of a top-tier Korean asset manager by a foreign fund.
Hillhouse is reportedly pursuing the acquisition through its Japanese property developer subsidiary, Samty Holdings, which is managed by its real estate investment arm, Rava Partners.
Bidding War and Regulatory Hurdles
The acquisition process was highly competitive, featuring bids from domestic insurers like Hanwha Life and Heungkuk Life, and Singaporean rival CapitaLand. The final selection of Hillhouse Investment has generated controversy, primarily concerning the sale process and future regulatory approval.
The Price Jump: Sources indicate that Hillhouse did not initially submit the highest bid in the main auction but significantly increased its offer to W1.1 trillion ($748 million) during a “progressive deal” stage, a move questioned by rival bidder Heungkuk Life.
Regulatory Scrutiny: The transaction now faces a major hurdle: a mandatory eligibility review by South Korea’s Financial Services Commission (FSC).
Given Hillhouse Investment’s perceived ties to Chinese capital, some market watchers are flagging concerns over a foreign fund managing sensitive data related to key national infrastructure, as IGIS manages significant assets sourced from Korean public institutions like the National Pension Service.
The deal is expected to close in the first half of next year, pending this regulatory approval.
Broader Asia Real Estate Headlines
Beyond the IGIS acquisition, other major real estate developments are unfolding across the region:
India IPO Plans: RMZ Corp, a major Bengaluru-based developer, is reportedly in preliminary discussions with bankers for a potential Initial Public Offering (IPO) that could raise up to $1 billion, making it one of India’s largest real estate listings.
Australia’s Data Center Boom: Developer Greg Goodman has unveiled plans for a massive A$5 billion ($3.3 billion) hyperscale data center campus in the emerging Western Sydney hub of Eastern Creek, replacing a former facility with two high-value data centers.