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Korean insurers invest $100 mn in Google-leased Silicon Valley building

Dec 26, 2016 (Gmt+09:00)

South Korean insurance firms have invested about 120 billion won ($100 million) in senior loans secured by an office tower in Silicon Valley leased to Google Inc., targeting a 5% return a year.

Jay Paul Co., a U.S. developer, sold the senior loans consisting of note A and note B for refinancing purpose of the recently-built property, Moffett Gateway, according to investment banking sources on Dec. 23.

A couple of unidentified Korean insurers bought the B type note through a 10-year fund of South Korea’s Meritz Real Estate Asset Management Co. Ltd. Payment was completed at the end of November.

Moffett Gateway is located near the Moffett Park in Silicon Valley and has 612,796 square-meter office space. It consists of two seven-story office buildings and a fitness center building. Google will continue to lease the property for the next 10 years.

The senior loan investment comes after a group of domestic insurance firms and savings funds invested 250 billion won ($207 million) in mezzanine debts secured by a 11-story office building at 85 10th Avenue in Chelsea, New York, which Google also occupies.

By Daehun Kim

Yeonhee Kim edited this article

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