A global consortium headed by a Korean investment bank was selected as the preferred bidder for ownership of the Tour Majunga, the fourth-tallest building in France, after offering around $1 billion.
Mirae Asset Daewoo leads the consortium, which includes Amundi Immobilier and other institutional investors in France. Amundi Immobilier is a 100 percent subsidiary of the French behemoth Amundi.
They will join forces to secure 40 percent of the funding while raising the remaining 60 percent through in country debt.
Korea’s top-tier securities firm expects that the leveraged buyout will bring about handsome profits.
Completed in 2014, the 193-meter Tour Majunga is a landmark building located in La Defense, near Paris.
According to Wikipedia, the Tour Majunga is the fourth tallest building in the country _ the highest one is First at 231 meters followed by Montparnasse at 210 meters and Incity, 200 meters.
Currently, the skyscraper houses the head offices of such big-name financial companies as Deloitte and Axa Investment Managers, an investment arm of Axa Group.
Deloitte is a global accounting and consulting company while Axa is one of the world’s largest financial outfits.
“Contracts with Deloitte and Axa will run for longer than the next nine years on average. Hence, the building promises to provide a stable cash flow,” a Mirae Asset Daewoo official said.
“At a time when profits from overseas real estate are not so high, the Tour Majunga will be a good source of revenues. It is expected to give annual profits higher than 7 percent.”
The deep-pocketed Mirae Asset Daewoo, which came to town after mergers between Mirae Asset Securities and Daewoo Securities in late 2016, has tried to expand its business horizon in overseas markets.
Based on its capital, which falls just shy of $8 billion, the Seoul-based firm has rapidly sought offshore investment targets.