Mirae Asset, NH Investment lend $182 mn on LA hotel, condos
Jun 21, 2019 (Gmt+09:00)
S.Korea's LS Materials set to boost earnings ahead of IPO process
South Korea to ban Chinese online products without KC certification
Hyundai Motor workers at Alabama plant may move to join UAW
Korea scraps ban on online purchase of 80 items from abroad
LG ends XR partnership with Meta; Amazon emerges as new partner
Mirae Asset Daewoo Co. Ltd. and NH Investment & Securities Co. Ltd. have provided $182 million loans on a luxury hotel and condominium development in Los Angeles' West Hollywood in a series of their co-investments in overseas properties.
The two South Korean brokerage firms closed the loan deal in May on the West Hollywood Edition hotel and residences, a source with knowledge of the matter said on June 21. It was first reported by MoneyToday TV ‘s website earlier this week.
The $300 million project is scheduled for completion in July, according to media reports.
Mirae Asset and NH Investment have put $91 million each into the project and sold down part of the debts to domestic institutional investors for expected annual returns of 5-6%.
The project features a 13-story hotel tower and a nine-story building with 20 residential units.
In detail, the loans broke down into $125 million for the residences and a mezzanine note of $57 million for the hotel.
For the hotel which will be operated under Marriott’s Edition brand, its developer borrowed an undisclosed amount in a senior debt from a local bank, according to the source.
Seoul-based AIP Asset Management Co. Ltd. manages the debt investment through a special purpose company.
Last year the two biggest South Korean brokerage firms by equity capital extended a subordinated loan of $150 million for the Drew Las Vegas resort development.
“Co-investments are easy to sell down because the companies get sort of cross guarantees from each other by making a co-investment,” an unnamed brokerage company source was quoted as saying in the MoneyToday TV report.
“We can also slow the draw-down speed and secure capital for another investment, so co-investment demand will grow further.”
By Hyunil Lee
hiuneal@hankyung.com
Yeonhee Kim edited this article
-
Asset managementYoung rich Koreans set sights on M&As, commercial property deals
May 19, 2024 (Gmt+09:00)
-
Private debtM&A rebound will drive private credit volume increase: Golub Capital
May 16, 2024 (Gmt+09:00)