The KTU could buy office space in London. A South Korean credit union is close to purchasing office space in London as it looks to take advantage of the relatively inexpensive office market in the UK capital.
The Korean Teachers’ Credit Union is looking to purchase a 12 story commercial property in London as it aims to capitalise on the inexpensive commercial property scene currently in the UK.
It is believed that they could be joined by other Korean companies looking to invest in office space in London with a figure of £299 million being rumoured to take control of the building.
Negotiator Lee Kun Ho has refused to speculate about the particular office building in question as talks are at a delicate stage in the process however an announcement is expected sooner rather than later.
The credit union is aiming to increase the investments from overseas in order to nudge these investments closer towards the target of 6.8%, a 2.8% projected rise from January 2011.
Mr Lee said: “The price is still attractive enough for us to earn around 6 percent annually, and possibly further returns upon selling the building after a few years.
“A majority of our investment is still in financial assets, and we seek to diversify as bond yields are low and stock markets volatile. Asian investors with sufficient liquidity can seize the investment opportunity amid financial turmoil in Europe and the U.S.,” he added.
The KTU is not the only Korean enterprise which has been using the London office market in order to generate funds, Korea Investment Corp have already invested in London office space.
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