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Mirae Asset, NH Investment lend $182 mn on LA hotel, condos

Jun 21, 2019 (Gmt+09:00)

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.

Earlier this month Mirae Asset and NH Investment made a joint investment of undisclosed amounts in a 120-million-euro acquisition of an office building in Slovakia.

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

Yeonhee Kim edited this article

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