Mirae Asset poised to buy German building for €300 mn: report

Credit Suisse Asset Management is managing the sale of the 17-story building constructed last year. It had developed the construction project for its European real estate fund.

Mirae will launch a private real estate fund to raise around 145 billion won ($127 million) from domestic institutional investors and buy equity interests in the property, the Maeil Business Newspaper reported on April 13, citing unnamed real estate industry sources.

The rest will be borrowed from financial institutions.

Law firm Linklaters LLP will continue to lease the 28,860-square-meter building through 2025.

The property is close to Commerzbank Tower which Samsung Group’s financial units acquired for 900 billion won last year.

Frankfurt is seen as the most stable property market within Europe, because of its solid economic growth and low vacancy rate, as well as global fund inflows into the city following the Brexit decision, the daily said.

Mirae Asset and its sister companies have been pushing into overseas real estate markets to meet growing demand from domestic investors for better yields.

The total value of cross-border real estate purchases by the units of Mirae Asset Financial Service Ltd. is on course to exceed 1 trillion won so far this year.

Earlier this year, Mirae Asset Global snapped up an office building in Canberra, Australia, worth A$320 million.

Its brokerage arm Mirae Asset Daewoo Co. Ltd. bought an office tower of Vodafone Group in Dusseldorf, Germany, for an estimated 350 billion won. 

Meanwhile, the headquarters building of Charles Schwab in San Francisco which Mirae had been in the bidding for, was reportedly sold to the Blackstone Group for $313 million.