Hyundai co-invests in $275 mn property near Paris with French firm
May 28, 2018 (Gmt+09:00)
Deutsche Bank's Korea IB head quits after country head resigns
Macquarie Korea Asset Management confirms two nominees
Hanwha buys S’pore Dyna-Mac’s stake for $73.8 mn from Keppel
Korea's Taeyoung to sell local hotel to speed up debt workout
Meritz leaves door open for an M&A, to stay shareholder friendly
Hyundai Investments Co. Ltd. has completed the €235 million ($275 million) acquisition of a seven-story office building in the Paris metropolitan area in co-investment with a French asset manager, as the suburbs of the capital city are undergoing massive redevelopment ahead of the 2024 Paris Olympics.
Hyundai and the unidentified French firm poured around 150 billion won ($140 million) into Le Balthazar in Saint-Denis, just 5 km from central Paris, while borrowing the rest for the purchase, according to investment banking sources on May 27.
Hyundai raised 135 billion won from three South Korean securities companies – BNK Securities Co. Ltd., an affiliate of Busan Bank, Hana Financial Investment Co. Ltd. and HMC Investment Securities Co. Ltd. to finance the deal. The French asset manager spent 15 billion won on the deal.
The wholly-owned unit of Hyundai Marine & Fire Insurance Co. Ltd aims to resell to South Korean insurance companies and other institutional investors its equity interests in the prime office building which is expected to produce dividend yields of 7-8% per annum.
Le Balthazar has a floor space of 32,600 square meters and is leased to the business services arm of Orange S.A., France’s telecoms giant.
It is located near the Stade de France, which was built for the 1998 football World Cup and will host the opening and closing ceremonies of the 2024 summer Olympics.
Most of a few new Olympic facilities, including the athletes’ village, will be constructed in Saint-Denis, regenerating the poor deindustrialized town. New transport links being built under the Grand Paris infrastructure development will also ease overcrowding on public transport in the northern suburban area.
The solid eurozone economy and steady rent increases in office buildings in the Paris metropolitan area are also behind the investment decision, according to the sources.
Hyundai Investments manages over 1.5 trillion won in overseas property assets.
By Daehun Kim
Daepun@hankyung.com
Yeonhee Kim edited this article
-
Private debtM&A rebound will drive private credit volume increase: Golub Capital
May 16, 2024 (Gmt+09:00)
-
Investment bankingDeutsche Bank's Korea IB head quits after country head resigns
May 13, 2024 (Gmt+09:00)
-
Venture capitalVC firm DSC Investment forms Korea's largest secondary fund
May 09, 2024 (Gmt+09:00)