US Real Estate Fund
On Sept. 18, Mirae Asset Global Investments announced the sales of the Mirae Asset MAPS US Real Estate Fund that invests in four prime office buildings located in Dallas, Texas.
The investment limit of the Fund is 300 billion won (US$260 million), and will be available via local branches of Mirae Asset Securities, Mirae Asset Daewoo Securities, and Mirae Asset Life Insurance from September 19 to 28.
The Fund is closed-end and will not be redeemable before expiration, 7 years and 6 months from launch date.
To alleviate the liquidity issue for the investors, the Fund will be listed on the Korea Exchange within 90 days of initial operation.
The Fund seeks to provide a stable capital income by investing in recently established office buildings in the Cityline complex near Richardson area in Dallas.
Strategically developed since 2013, the office cluster aims to improve daily work, life and leisure experience around the area and is highly known for its easy accessibility from numerous bus/train stations, central highways and international airport.
Leasing all four buildings in the Fund, StateFarm is the leading insurance company in America with over 100 years of history.
The company was listed 35th in the Fortunes’ Top 500 companies, 127th on the Global TOP 500 companies and holds AA credit rating from S&P.
The Fund expects to maintain a stable income from StateFarm’s a long-term lease contract of 20 years.
The Fund is not currency hedged, and thus will fluctuate in accordance with dollar price. Possible capital gain or loss on sale of assets may occur at the end of expiration, and dividends will be distributed every 6 months starting June, 2017.