<Meritz Real Estate to invest $134 mn in Gas Company Tower in L.A>  2016.08.01

South Korea’s Meritz Real Estate Asset Management together with four local institutional investors invested about 150 billion won ($134 million) in a skyscraper in Los Angeles, the U.S. as a part of its effort to up its investment in overseas real estate offering higher returns amid low-interest rate and fewer investment options at home.

According to investment bank sources on Sunday, Meritz Real Estate Asset Management and four local institutional investors including state-run pension funds operators invested about 150 billion won in a mezzanine debt backed by the Gas Company Tower located in Los Angles, the U.S. The asset manager expects the investment to deliver a stable return of 6 percent per annum over the next five years.

The Gas Company Tower that was built in 1991 is 50 floors high above ground and six floors below and it has a total building area of 127,000 square meters. The skyscraper is owned by Canada`s largest alternative asset manager Brookfield Asset Management and currently has Southern California Gas Company and accounting giant Deloitte as its long-term tenants.

Meritz Real Estate Asset Management was established in February this year by its parent Meritz Financial Group that in the beginning of this year decided to solidify its investment in overseas real estate to seek higher returns. The company is headed by Shin Jun-hyun, former real estate investment director of Hyundai Asset Management. Shin previously led various large-scale real estate investment deals including the Waterside building in London, the U.K, and the 650 Madison Avenue building in New York, the U.S.

By Kang Doo-soon and Song Gwang-sup

Press Link : http://pulsenews.co.kr/view.php?sc=30800020&year=2016&no=548844