Mirae Asset’s $270 mn property fund for State Farm complex fully subscribed
Sep 29, 2016 (Gmt+09:00)
1
Min read
Most Read
S.Korea's LS Materials set to boost earnings ahead of IPO process
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
Macquarie eyes its 1st Korean data center valued around $722 mn
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
Galaxy Ring, new foldables set to steal the show at Samsung Unpacked Paris
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
SK Inc. in talks to sell Pharmteco’s US CDMO plant to Novo Nordisk
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
POSCO gears up for carbon-free steelmaking with hydrogen
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
Mirae Asset Global Investments Co. Ltd. has raised the planned 300 billion won ($270 million) in a public property fund in 10 days after it was launched for a U.S. real estate purchase, underscoring the growing popularity of property funds in South Korea.
The closed-end fund, targeting a 4~6% annual return, attracted retail investors in search of stable dividend incomes. They put a minimum 10 million won ($9,107) into the fund, respectively, as required, the South Korean asset management firm said on Sept. 28.
The fund was set up to finance part of Mirae Asset’s recent acquisition of State Farm Insurance’s four-building office complex in Richardson, Texas from the insurer in a 900 billion won ($820 million) deal. For the purchase, the asset management firm plans to raise an additional 120 billion won from a private equity fund, and borrow 480 billion won.
It was offered for sale through brokerage and insurance outlets of the asset manager between Sept. 19 and Sept. 28. The Mirae Asset fund became the first public fund in South Korea, excluding bond investment funds, to raise more than 200 billion won so far this year.
State Farm will lease back the whole office buildings for 20 years, during which the rents are set to rise by 2% every year, a Mirae Asset source said. The rent incomes will generate stable cash flows, while the fund is not currency hedged.
“It was confirmed that there is a strong demand for alternative investments, away from bonds and stocks. Going forward, an array of products based on a variety of onshore and offshore assets are expected to be introduced in the domestic public fund market,” the Chosun Ilbo newspaper quoted another Mirae Asset source as saying.
By Hyung Suk Song
click@hankyung.com
The closed-end fund, targeting a 4~6% annual return, attracted retail investors in search of stable dividend incomes. They put a minimum 10 million won ($9,107) into the fund, respectively, as required, the South Korean asset management firm said on Sept. 28.
The fund was set up to finance part of Mirae Asset’s recent acquisition of State Farm Insurance’s four-building office complex in Richardson, Texas from the insurer in a 900 billion won ($820 million) deal. For the purchase, the asset management firm plans to raise an additional 120 billion won from a private equity fund, and borrow 480 billion won.
It was offered for sale through brokerage and insurance outlets of the asset manager between Sept. 19 and Sept. 28. The Mirae Asset fund became the first public fund in South Korea, excluding bond investment funds, to raise more than 200 billion won so far this year.
State Farm will lease back the whole office buildings for 20 years, during which the rents are set to rise by 2% every year, a Mirae Asset source said. The rent incomes will generate stable cash flows, while the fund is not currency hedged.
“It was confirmed that there is a strong demand for alternative investments, away from bonds and stocks. Going forward, an array of products based on a variety of onshore and offshore assets are expected to be introduced in the domestic public fund market,” the Chosun Ilbo newspaper quoted another Mirae Asset source as saying.
By Hyung Suk Song
click@hankyung.com
Yeonhee Kim edited this article
More to Read
-
-
Pension fundsKorea’s military fund taps ex-president of Woori Financial as CIO
Jun 28, 2024 (Gmt+09:00)
-
-
Pension fundsKorea's NPS CIO talks with GPIF, GIC execs on asset allocation
Jun 24, 2024 (Gmt+09:00)
-
Foreign exchangeKorea FX authorities, NPS raise currency swap limit to $50 bn
Jun 21, 2024 (Gmt+09:00)
Comment 0
LOG IN