IGIS Asset Management acquires Homa

IGIS Asset Management, South Korea's largest real estate asset manager, has partnered with ACRE-backed Homa to form Homa Korea, a build-to-rent (BTR) platform aimed at addressing the burgeoning rental housing market in South Korea. This venture involves the launch of a $300 million build-to-rent fund, representing a significant step in institutionalizing Korea’s rental housing sector. The collaboration is orchestrated through a joint venture asset management firm based in Singapore, with operations set to begin in Korea by the end of the year.

The partnership between IGIS X Asset Management and Homa will advance on a project-by-project basis, ultimately seeking to secure $300 million in commitments from international institutional investors. Homa Korea will operate through a structure that combines asset-heavy and asset-light investment strategies. The asset-heavy approach involves the acquisition and development of multi-family assets where IGIS X will manage the identification, entitlement, and construction processes, while Homa contributes its brand value and technology platform. The asset-light strategy, on the other hand, focuses on applying the Homa brand and business model to properties owned by third parties, aiming to generate management fees without significant capital investment.

IGIS X CEO, Jun Ho Pok, emphasized the partnership's strategic importance, stating that the venture leverages IGIS X’s local expertise alongside Homa's international platform to deliver institutional-quality rental housing. For Homa, co-founder Blake Olafson views this expansion into Korea as a critical move after establishing a strong brand and operational model over nine years. With operations already underway in Thailand, where the platform manages over 1,100 units and has 360 more under development, Homa's entry into Korea marks a significant geographic extension.

In this joint endeavor, IGIS X's local market and regulatory understanding will be paired with Homa's operational insights and proven branding. Within the broader market context, this move signifies increased institutional interest in South Korea's rental housing sector, positioning IGIS and Homa as formidable players amid growing competition among asset managers seeking to tap into Asia’s rising rental housing demand.

Looking forward, the joint venture anticipates that its first property will start operations by the fourth quarter of this year. As part of its international ambitions, Homa has signed an agreement to establish a similar platform in the Middle East, North Africa, and Turkey, expected to commence by 2027. However, the focus remains on launching and scaling Homa Korea successfully, potentially challenging existing players and setting a new standard in Korea’s rental housing market.