South Korea’s Mirae Asset Daewoo has reportedly invested $243 million in mezzanine debt in Goldin Financial Global Centre in eastern Kowloon Bay, Hong Kong.
Singapore’s sovereign wealth fund GIC and Deutsche Bank also joined the mezzanine financing, according to Korean media reports citing a company announcement.
The 27-story grade A office tower is located at the Kowloon East waterfront, an area where the Hong Kong government has committed HK$100 billion ($13 million) in infrastructure projects to turn it into a new central business district.
Kowloon East is predicted to become Hong Kong’s largest office submarket, according to real estate services firm CBRE, which estimated that the Grade A office footprint in the area will increase to 17.2 million square feet by 2021.
“The bulk of office development, investment and leasing activity will be focused on emerging submarkets such as Kowloon East, West Kowloon and Wong Chuk Hang in the next 5-10 years. Of these, CBRE Research believes Kowloon East has the greatest potential to emerge into a premier office submarket,” said Marcos Chan, head of research for CBRE Hong Kong, Southern China and Taiwan.
The Goldin asset, owned by Goldin Financial Holdings chairman Pan Sutong, is said to have enjoyed an increase of HK$4.2 billion in fair value by the end of 2018, from the HK$12.5 billion fair value in 2016.
This is the second real estate investment by Mirae Asset Daewoo in Hong Kong, following a $300-million debt financing for The Centre, the city’s fifth tallest skyscraper, in April last year.
The Korean brokerage’s real estate portfolio spans the globe, including Vietnam-based Keangnam Landmark 72 (for which it paid $350 million), a logistics warehouses of FedEx ($48 million), Las Vegas’ Cosmopolitan Hotel ($95 million), London-based Cannon Bridge House (around $334 million) and Amazon-leased distribution centre in Atlanta ($78 million).
On the group level, Mirae Financial Group has recently ventured into technology startup investments. Its partnership fund with Naver, the Mirae Asset-Naver Asia Growth Fund, led a $50-million Series D financing in Indonesian marketplace Bukalapak earlier this year. The fund has also participated in Grab’s Series H funding.