Alternative investment

NH Investment, KB Asset buy Dallas building for $370 mn

Feb 20, 2020 (Gmt+09:00)

1 Min read

Most Read

Deutsche Bank's Korea IB head quits after country head resigns

Macquarie Korea Asset Management confirms two nominees

Hanwha buys S’pore Dyna-Mac’s stake for $73.8 mn from Keppel

Korea's Taeyoung to sell local hotel to speed up debt workout

Meritz leaves door open for an M&A, to stay shareholder friendly

NH Investment & Securities Co. Ltd. and KB Asset Management Co. Ltd. have acquired an office building in Dallas for $370 million, which represented the highest per-square-foot price for a commercial property in North Texas.

The Union in the Uptown neighborhood of Dallas is a mixed-use development completed in 2018 and consists of an office and retail tower and a 309-unit apartment building.

The South Korean institutions bought the office and retail components from RED Development LLC early this month for $730 per square foot, the highest price paid for an office and retail property in the region, according to investment banking sources on Feb. 20.

For the acquisition, they secured $222 million loan through Goldman Sachs.

RED Development will reportedly retain a minority stake in the property.

The 505,000-square-foot office and retail space at the Union was about 94% leased. Tenants include law firm Akin Gump, accounting firm Weaver and software company Salesforce.

NH Investment underwrote the equity investment made by KB Asset to sell down to domestic institutional investors.

The acquisitions came about a half year after Korean financial institutions, led by Hana Financial Investment Co. Ltd., invested $96.4 million in the AT&T headquarters building in Dallas.

Texas is one of the few US states with no income tax. The tax relief for both corporates and individuals have been driving economic growth with steady population inflows from northern states and Mexico.

By Hyun-il Lee

hiuneal@hankyung.com