Korean insurers invest $102 mn in senior debts of Manhattan building
Apr 07, 2017 (Gmt+09:00)
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)
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)
POSCO gears up for carbon-free steelmaking with hydrogen
![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)
South Korea sets sights on fostering EDA tech to win HBM chip war
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
Three South Korean insurance firms have invested 115 billion won ($102 million) in senior secured debts of a building in Manhattan, New York which is entirely occupied by a public high school, for an expected annual return of between 4 and 5%.
KTB Asset Management Co. Ltd. arranged the investment from unidentified Korean insurers through a project fund for a 10-year investment period.
The high school under the NYC Department of Education will continue to use the building, Trinity Place, as a campus through 2027, KTB Asset Management said in a statement on April 5.
The South Korean institutions won exclusive negotiation rights from the building’s landlord for the investment in secured debts which were issued to refinance debts owed to UBS, although the global investment bank offered to roll them over, according to KTB Asset. The loan-to-value ratio for the senior debts is less than 63%.
The property is surrounded by headquarters of Goldman Sachs and Deutsche Bank and the Federal Reserve Bank building of New York.
South Korean investors have been scaling up investments in senior and mezzanine debts secured by commercial buildings in the heart of New York City, while shying away from equity interests in US real estate, the prices of which rose sharply.
The asset manager added that it was planning a similar type of new investments with the institutional investors participating in the project fund, without elaborating further.
By Taeho Kim
highkick@hankyung.com
Yeonhee Kim edited this article
-
-
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)