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Alternative investment

Meritz Alternative to invest in Washington DC building

Meritz forms a $170 million fund to buy 50% stake in 665 New York Avenue

By Sep 24, 2021 (Gmt+09:00)

665 New York Avenue (Courtesy of Brookfield Properties)
665 New York Avenue (Courtesy of Brookfield Properties)

South Korea’s Meritz Alternative Investment Management Co. is set to invest in an office building in Washington DC.

Meritz formed a 200 billion won ($170 million) property fund to buy a 50% stake in 665 New York Avenue building in the US capital, according to investment banking industry sources on Sept. 24. South Korea’s Police Mutual Aid Association (PMAA) contributed 60 billion won to the fund, becoming the largest investor.

Brookfield Properties completed the 12-story building in 2019. About 93% of the property is leased with major tenants including Brookfield, UnitedHealthcare Inc. and PricewaterhouseCoopers.

The building is known to be valued at $800 million, including senior loans of 540 billion won. Brookfield and a US property investment and management firm Lockwood Capital invested 400 billion won and 1.4 billion won, respectively.

Meritz plans to manage the fund for seven years with a target return of 7.33% based on the internal rate of return (IRR).

Write to A-Young Yoon at youngmoney@hankyung.com

Jongwoo Cheon edited this article.

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