Alternative investment
Hana to launch $38 mn retail fund for US property deal
By Oct 13, 2020 (Gmt+09:00)
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Hana Alternative Asset Management Co. plans to raise 43 billion won ($38 million) from a retail fund for its investment in an office building in north of Dallas, Texas, the South Korean company said on Oct. 13.
It will launch the domestic fund with a term of five and a half years next week to finance the investment in Legacy Central 4.
The office building is fully leased to Samsung Electronics Co. under a 11-year term and houses its 1,300 employees. If Samsung cancels the lease agreement before the term expires in January 2030, it will pay the full rent for the remaining period, Hana said in a statement.
The property is part of a $300 million mixed-use redevelopment by the Los Angeles-based Regent Properties, comprised of offices, retail space, apartments and other facilities.
The asset manager will put up an undisclosed amount of money for principal investment in the office building. It will own the property jointly with Regent Properties, which will manage the asset after the retail fund launch.
Reflecting the average annual rent increase of 2.22% under the lease term, the retail fund targets an 8.56% internal rate of return before currency hedging, or a dividend yield of 7.75%.
The retail fund is Hana's first such vehicle launched this year for global real estate investment. The company will market the fund to both public investors and high net-worth individuals, it added.
Write to Seon-Pyo Hong at rickey@hankyung.com
Yeonhee Kim edited this article.
It will launch the domestic fund with a term of five and a half years next week to finance the investment in Legacy Central 4.
The office building is fully leased to Samsung Electronics Co. under a 11-year term and houses its 1,300 employees. If Samsung cancels the lease agreement before the term expires in January 2030, it will pay the full rent for the remaining period, Hana said in a statement.
The property is part of a $300 million mixed-use redevelopment by the Los Angeles-based Regent Properties, comprised of offices, retail space, apartments and other facilities.
The asset manager will put up an undisclosed amount of money for principal investment in the office building. It will own the property jointly with Regent Properties, which will manage the asset after the retail fund launch.
Reflecting the average annual rent increase of 2.22% under the lease term, the retail fund targets an 8.56% internal rate of return before currency hedging, or a dividend yield of 7.75%.
The retail fund is Hana's first such vehicle launched this year for global real estate investment. The company will market the fund to both public investors and high net-worth individuals, it added.
Write to Seon-Pyo Hong at rickey@hankyung.com
Yeonhee Kim edited this article.
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