Meritz RE Asset Management commits W150b to LA property

[THE INVESTOR] Meritz Real Estate Asset Management has committed some 150 billion won (US$135 million) to investing in an upscale office building in Los Angeles by raising funds from other Korean institutional investors, local newspaper reported on Aug. 2.

It is the first property fund that Meritz Financial Group’s property investment unit has launched since it was established in February this year. 

Meritz RE Asset Management and four local institutional investors including state-run pension funds operators bought a mezzanine loan worth 150 billion won secured by the Gas Company Tower located in Los Angles, according to Maeil Business Newspaper. 

The asset manager expects the property investment to deliver a return of 6 percent per year over the next five years.

Built in 1991, the Gas Company Tower is a 52-story office skyscraper and is owned by Canadian asset manager Brookfield Asset Management.

Currently Southern California Gas Company and Deloitte are long-term tenants of the building.

By Park Han-na (hnpark@heraldcorp.com)