This photo retrieved February 2, 2010 is from http://www.airport-int.com. South Korea's National Pension Service bought 12 percent stake in Gatwick. The deal was a little less than 100 million pounds.
February 2, 2010 SEOUL (AFP) - South Korea's state pension fund, the world's fifth largest, said Tuesday it would buy a 12 percent stake in Britain's Gatwick airport -- its second major investment in the country in three months.
"We have been looking into investment opportunities abroad which ensure safe returns," said Kim Hyung-Dong, spokesman for the National Pension Service which has assets of more than 273 trillion won (236 billion dollars).
"The investments in Britain are part of efforts to diversify investment," he told AFP, saying the fund would expand its overseas interests but giving no figure.
Foreign investment currently makes up just under 10 percent of total assets.
Banking giant HSBC announced last November it is selling its London headquarters to the National Pension Service for 772.5 million pounds (1.23 billion dollars).
Gatwick, Britain's second busiest airport, was sold last October to Global Infrastructure Partners, an infrastructure fund, for 1.51 billion pounds.
The spokesman gave no figure for the cost of a 12 percent stake in Gatwick, but Britain's Financial Times put it at slightly less than 100 million pounds.
The pension fund's managers have been under pressure to diversify investment to secure higher returns amid concern about South Korea's ageing society.
A government report in October 2007 estimated that the fund would dry up in 2060 due to rising pension payments.
But managers have been focusing on safe investment opportunities overseas because of the global financial downturn.
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