T8 building in Frankfurt

Korean outfit earns 120 million euros in 2 years

Mirae Asset Global Investments has signed a deal to sell an office tower in Frankfurt’s banking district at 400 million euros, two years after it bought the property named Taunusanlage 8 (T8).

The Seoul-based outfit said June 17 that it minted the contract to dispose of the 17-story building with a counterpart that has “financial leeway.” Its identity was not disclosed, though.

Because Mirae Asset purchased T8, which has a floor space of almost 30,000 square meters, at 280 million euro in April 2017, it earned some 120 million euros in 26 months.

Mirae Asset raised about 110 million euros from Korean institutional investors to buy the premium building from Credit Suisse Asset Management.

Back then, its vacancy rate was as high as 60 percent, but Mirae Asset raised the lease rate to 99 percent in a year.

The real estate fund is set to expire in October 2022, but Mirae Asset decided to make an earlier exit than it originally planned as the buyer offered attractive financial terms.

Frankfurt is regarded as one of the most stable property markets in Europe thanks to its solid economic growth and low vacancy rate. In particular, hopes are high that global financial funds would flow into the German city after Brexit.

Law firm Linklasters uses a substantial part of the building and also included in the tenants’ list are such high-profile players as WeWork and FM Global.

The former is a U.S. company, which provides shared workspace for high-tech start-ups and services for entrepreneurs, while the latter is an American mutual insurance company.

Mirae Asset has proactively waded into overseas real estate markets over the past several years.

Earlier this year, it headed a global consortium to become the preferred bidder for ownership of the Tour Majunga, the fourth-largest building in France, after offering about $1 billion.

Completed in 2014, the 193-meter Tour Majunga is a landmark building located near Paris.

Choi Chang-hoon, the firm’s chief in the real estate investment, said in a statement that Mirae Asset is ready to channel funds in lucrative overseas properties.

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