Mirae Asset Global Investments Co. Ltd. was recently named as a preferred buyer of an office tower in Frankfurt’s banking district, Taunusanlage 8 (T8), in a deal worth €300 million ($319 million), according to a local newspaper report.
Credit Suisse Asset Management is managing the sale of the 17-story building constructed last year. It had developed the construction project for its European real estate fund.
Mirae will launch a private real estate fund to raise around 145 billion won ($127 million) from domestic institutional investors and buy equity interests in the property, the Maeil Business Newspaper reported on April 13, citing unnamed real estate industry sources.
The rest will be borrowed from financial institutions.
Law firm Linklaters LLP will continue to lease the 28,860-square-meter building through 2025.
Frankfurt is seen as the most stable property market within Europe, because of its solid economic growth and low vacancy rate, as well as global fund inflows into the city following the Brexit decision, the daily said.
Mirae Asset and its sister companies have been pushing into overseas real estate markets to meet growing demand from domestic investors for better yields.
The total value of cross-border real estate purchases by the units of Mirae Asset Financial Service Ltd. is on course to exceed 1 trillion won so far this year.
<Edited by Yeonhee Kim>