Hana Alternative invests $300 mn in Times Square hotel-backed debt

Hana Alternative Assets Management Co. Ltd. has collected $300 million from seven South Korean institutional investors to invest in mezzanine debts on a luxury hotel and the land in Times Square, in the first investment by domestic investors in a debt backed by overseas land.

The unit of Hana Financial Group completed the investment on April 23 through a fund it had launched, according to a source with knowledge of the matter on April 25, after it was first reported by the Maeil Business Newspaper.

A pool of seven unidentified pension and retirement savings funds participated in the investment in the mezzanine debts secured against Marriott Edition Hotel and its site.

The investment comes after real estate developer Maefield Development and SoftBank's Fortress Investment Group reportedly acquired the Times Square Edition hotel in a $1.53 billion deal to secure full ownership earlier this year.

The building will comprise a six-story retail space at its base and a 42-story tower comprising a Marriott Edition Hotel with 452 guest rooms, as well as an enormous LED screen on the exterior which is reportedly set to become the largest and brightest in Times Square.

Its total asset value is estimated at $2.9 billion, with the hotel slated to open in June.

“It’s not the first investment by domestic investors in properties in Times Square. But it is meaningful in that it invested in a property under construction in Times Square, which are in the last stage of interior design works, and it was the first investment by domestic investors in overseas land,” Maeil quoted an unnamed investment banking source as saying.

“In addition to this investment, we are planning to provide advanced global investment products on a steady basis,” Hana Alternative CEO Moon-hyun Cha was cited as saying.

Write to Daehun Kim at daepun@hankyung.com">

daepun@hankyung.com

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