Korea’s JB Asset to buy Comcast’s new office building in Denver for $72 mn

  • 2017-01-09

JB Asset Management Co. Ltd., a unit of a South Korean provincial bank, has been named as a preferred buyer of a new office building in Denver which Comcast Corp. is set to lease, and is in the process of raising about $31 million from a couple of domestic institutional investors to fund the $72 million acquisition.

comcast-denver

The asset management firm expects to provide an about 7% annual return to investors in a five-year fund it is set to launch for the acquisition, according to investment banking sources on Jan. 9. The five-story building is located in southwestern Denver and measures approximately 20,000 square meters.

JB Asset will also borrow $41 million in secured loans from U.S. financial institutions for the property deal which it plans to close within March when Comcast, the No. 2 U.S. broadcasting and cable TV operator, will begin to move in. Comcast is known to have leased three other office buildings in Denver.

Denver is one of fast-growing emerging cities in the U.S., along with Seattle and Houston. The city in Colorado is attracting companies and highly-educated professionals with lower corporate taxes than other states, so it is expected to have room for growth in office rents.

The property investment may fit the demand of South Korean investors which are targeting real estate assets in second-tier cities in pursuit of a steady stream of incomes, after commercial real estate prices in major cities rose sharply.

“Although U.S. lending rates remain unstable, the investment looks reasonable because it has a stable tenant,” said a real estate industry source.

By Daehun Kim and Donghun Lee

daepun@hankyung.com

<Edited by Yeonhee Kim>