[THE INVESTOR] The Korean Teachers’ Credit Union and the Teachers Insurance and Annuity Association of America signed a memorandum of understanding on Aug. 30 to establish a joint real estate investment firm.

The KTCU revealed on Sept. 1 that the MOU calls for a real estate investment firm that could see up to US$1 billion injection from the two organizations. 




Under the plans, the two sides will establish the JV before Dec. 1.

The two organizations have been collaborating since 2012, and signed a framework agreement for business cooperation in 2014 to set up a joint investment company. The previously formed JV is 51 percent held by the TIAA and 49 percent by KTCU.

According to news reports, the two organizations are also planning to expand the scope of cooperation to private equity funds and other investment vehicles.

By Choi He-suk (cheesuk@heraldcorp.com)