South Korea’s Mirae Asset Global Investments said Monday it has sold a premium authority building in Germany for 500 million euros ($551 million), earning a hefty profit.
The asset management unit of Mirae Asset Financial Group has signed a deal to sell Cologne City Hall building -- the third-biggest building in the city, the company said in a press release.
Mirae had acquired the building in February 2016 for 365 million euros through an overseas real estate blind fund. The firm’s dividend income rate through the equity investment marked 8 percent per year on average.
Cologne City Hall building in Germany (Mirae Asset Global Investments)
The commercial property includes two office buildings and a parking garage. Their asset value has increased over the years due to the city’s long-term lease, officials added.
Mirae Asset Group founder Park Hyeon-joo has made significant achievements in foreign alternative investments, including Taunusanlage 8 deal in June. By boosting his capability, the asset management unit signed the deal to sell the office building located in Frankfurt -- for 400 million euros. After the deal was closed, its internal rate of return surpassed 25 percent.
Mirae Asset Global said it is seeking more overseas investment opportunities.
“Following the successful exit from Taunusanlage 8, the latest deal resulted from sharing the goal of offering blue chip assets to investors, through organizational business process of purchase, management and sales,” said Choi Chang-hoon, head of the company’s real estate unit.
“We will continue to find high-quality overseas assets with the company’s know-how,” he added.
By Jie Ye-eun (email@example.com