Brookfield Asset Management Inc. has secured $147.2 million in a mezzanine tranche from South Korea’s Kiwoom Asset Management Co. Ltd. on a US office portfolio it acquired last year, according to a local media report.
The mezzanine note is part of the $550 million financing Brookfield raised to buy seven office buildings in four eastern US states for $775.1 million, the Seoul Economic Daily said last week.
Brookfield has pumped its own capital of $225.1 million to fund the transaction.
Kiwoom resold the mezzanine tranche to Meritz Securities Co. Ltd. and other domestic institutional investors via a private vehicle which targets annual returns of around 7%.
The offices in the portfolio are leased to investment-grade tenants, including Johns Hopkins University, the University of Pennsylvania and government institutions, the report added.
In 2016, Brookfield raised 1.6 trillion won ($1.4 billion) in senior loans from South Korean lenders to buy the International Finance Center complex in central Seoul for 2.5 trillion won from AIG Group.
Last year Kiwoom, a small-sized asset manager, provided a 35 million-pound ($45 million) senior loan on a portfolio of 110 care homes of Britain’s largest care home operator HC-One, in the first investment in a foreign senior care facility by a domestic institution.
Kiwoom manages 39 trillion won in assets.
<Edited by Yeonhee Kim>
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