Samsung Life and its real estate asset management subsidiary Samsung SRA have snapped up a 25 per cent stake in Savills Investment Management.
The buyer has also committed $1.3 billion for new acquisitions over the next four years, including to seed funds.
As part of the agreement, if the South Korean group invests twice this on future purchases, it can increase its SIM share by 10pc.
Samsung Life is putting up an initial $100.1m, cash.
The transaction, conditional on several regulatory approvals, is expected to be completed by the end of the year.
Three weeks ago SIM paid $151.5m for a modern office near Sydney’s Kingsford Smith Airport.
Prior to 2015, SIM was known as Cordea Savills; it changed name following the acquisition SEB Asset Management, which managed $15.8b of real estate (story continues below).
It invests in Asia Pacific and European product and provides equity strategies.
SIM’s profit before tax last calendar year was $23.6m.
“As part of the alliance, Savills IM will form a close working relationship with Samsung SRA which will seek to bring additional Korean client capital to Savills IM’s products alongside the capital commitment of Samsung Life’s and Savills IM’s other investment clients,” the pair said in a statement.
SIM chief executive Alex Jeffrey added the move would accelerate its ability to provide investment products for all clients.
“The partnership is unique in the industry combining Savills IM’s strengths as an investment manager with extensive local transaction and asset management capability in real estate debt and equity markets, with the strong capital support of Samsung Life”.
Samsung SRA chief executive officer Bumchul Lim said “with its 30 year track record, extensive network of 16 offices across 13 countries in Europe and Asia and broad product range, Savills IM is well positioned to address this market opportunity”.