Hana Financial Investment Co Ltd has invested 92 billion won ($77 million) to acquire six floors of 30 Hudson Yards, a 395m-high commercial office building in Manhattan, New York, the Edaily News reported on July 7. This will mark the company’s resumption of overseas alternative investments that had been halted in the first half of the year due to the Covid-19 outbreak.
According to industry sources, Hana Financial Investment invested 92 billion won in mezzanine debt through a fund managed by IGIS Asset Management, one of the biggest real estate asset management companies in South Korea. Related Companies, the owner of the Hudson Yards and one of the biggest private real estate developers in New York, has also offered guarantees for interest on the loan and various rental costs.
Facebook’s New York branch is currently leasing four of the six floors in that building. If Facebook’s lease expires without extension, Related Companies will automatically rent the floors thereby protecting investors. “Facebook is expected to suffer less from the prolonged Covid-19,” an industry source said.
The industry is keen on Hana Financial Investment’s move as it is occurring at a time when the overseas alternative investment market is frozen due to Covid-19. The company has also provided a 62 billion-won bridge loan for a hotel development project near New York City Hall.
“Hana Financial Investment noticed that even after Covid-19 owners of the landmark offices in Manhattan, such as 30 Hudson Yards, are steadily collecting over 90% of the rent,” a Hana Financial Investment official said. “The company will prove the stability of high-quality assets in the current rare and unpredictable black swan event.” (Reporting by Hyewon Chang)