Savills Investment Management has entered into an agreement to form a strategic investment alliance with Samsung Life, the leading life insurer in Korea, and its real estate asset management subsidiary Samsung SRA. As part of this agreement, Samsung Life will acquire a minority interest in Savills IM Holdings Limited and commit capital of US$1 billion to Savills IM's investment strategies over the initial four years of the relationship. The transaction, which is conditional on various regulatory approvals and other customary closing conditions, is expected to complete in Q4, 2021.
On completion of the transaction, Samsung Life will acquire an initial minority stake of 25% in Savills IM for £63.75 million in cash, subject to completion adjustments. Under the agreement, Samsung Life has options to increase its interest in Savills IM by up to a further 10% over the initial term, depending upon the quantum and timing of the provision of capital to Savills IM's investment products, the maximum being achievable if at least US$2 billion of capital is committed.
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.
Commenting on the Transaction, Alex Jeffrey, CEO of Savills Investment Management said: “This transformational alliance will be unique in the industry, combining Savills IM’s existing 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. It will significantly enhance and accelerate our ability to provide attractive investment products for all our investment clients.”
Youngmuk Jeon, CEO of Samsung Life, commented: “Samsung Life is excited to invest in Savills IM, one of Europe’s leading real estate asset management platforms. We are confident that Savills IM is well-positioned to help us expand our real estate investment network globally and that this strategic alliance, underpinned by our capital provision, will support and accelerate Savills IM’s growth over the long term.”
