The pension fund is targeting two projects in Seoul's tourist hubs alongside Korean asset manager BlueCove Investment
Canada's largest pension fund has made its first direct investment in Korea's hospitality sector, committing up to $112m to seed a $474m venture with BlueCove Investment, a Seoul-based hospitality-focused asset manager.
CPP Investments will hold a 95 percent stake in the partnership, with BlueCove owning the remaining 5 percent.
The venture will focus on acquiring and repositioning hotel assets in Seoul, starting with two projects in the city's tourist hubs, working alongside established global hotel operators.
Gilles Chow, head of real estate, Asia Pacific at CPP Investments, said the deal builds on a recent hospitality investment in Japan.
Chow said Korea's hospitality market is backed by strong domestic demand and growing inbound tourism.
The partnership, he added, is positioned to capture "the sector's continued growth" for the CPP Fund.
Esby Kim, CEO of BlueCove Investment, said the two firms' combined strengths underpin the deal.
Kim said CPP Investments brings global capital and market knowledge to the partnership.
BlueCove contributes on-the-ground expertise in managing hospitality assets across Korea, he added.
