The deal is part of Savills IM’s strategic investment alliance with Samsung Life and its real estate asset management subsidiary Samsung SRA. Credit: Mathew Schwartz on Unsplash.

South Korean insurer Samsung Life has agreed to buy a 25% stake in UK-based Savills Investment Management (Savills IM), a subsidiary of real estate services provider Savills, for £64m in cash.

The deal is part of Savills IM’s ‘strategic investment alliance’ with Samsung Life and its real estate asset management subsidiary Samsung SRA.

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As part of this agreement, Samsung Life will commit $1bn capital to Savills IM’s investment strategies to seed and co-invest in real estate equity and debt strategies across Europe and Asia.

This capital is also intended to help Savills IM secure additional capital from investors in South Korea as well as the Asia-Pacific region.

The agreement also provides Samsung Life with the option to increase its interest in Savills IM by up to a further 10% if a minimum of $2bn is committed over time.

The transaction is expected to close in the fourth quarter of the year, subject to regulatory approvals.

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As part of the agreement, Samsung SRA will work to add additional Korean client capital to Savills IM’s products.

Savills IM CEO Alex Jeffrey said that the ‘transformational alliance’ will enhance and accelerate the firm’s ability to provide attractive investment products for its investment clients.

Commenting on the development, Samsung Life CEO Youngmuk Jeon said: “Samsung Life is excited to invest in Savills IM, one of Europe’s leading real estate asset management platforms.

“We are confident that Savills IM is well positioned to help us expand our real estate investment network globally and that this strategic alliance, underpinned by our capital provision, will support and accelerate Savills IM’s growth over the long term.”

Samsung SRA Asset Management CEO Bumchul Lim added that the tie-up will strengthen the unit’s ability to provide attractive real estate investment opportunities at a time of heightened investor demand.

Last month, British insurance broker Ardonagh reportedly established an asset management division to accelerate its buy-and-build strategy.