Hana Alternative Asset Management has paid $201 million (220 billion won) for an office building in the U.S. city of Charlotte in North Carolina that is leased entirely to financial services firm Wells Fargo, industry sources said on Thursday (January 28).

Hana financed 140 billion won through senior loans and 90 billion won through an equity investment made by its real estate fund, which secured numerous institutions and targets an internal rate of return of over 7% after hedging of foreign exchange. The amount Hana will pocket from the sale of the building in a few years will be directly related to the strong return of the real estate fund.

The 358,414-square-foot building is located at 300 South Brevard, in Charlotte’s central business district, and is viewed as a trophy core office asset. The 15-story building has a modern design and is situated close to the city’s light rail, the Charlotte Convention Center, and many hotels.

Fully occupied, the building will be leased to anchor tenant Wells Fargo until the end of 2032. Wells Fargo operates the fourth-largest bank in the U.S. by asset size and the largest bank by market capitalization. Hana plans to kick off the sale process for the building after three years of management, and to close the deal in its fourth year.

“Demand for office buildings leased to creditworthy office tenants is strong in the U.S. despite the Covid-19 pandemic,” said an industry source, adding, “The office building in Charlotte is fully leased to Wells Fargo in the long term, giving stability and profitability and (Hana) could gain profits from offloading the asset in four years.”

Hana has been actively making real estate deals at home and abroad in the past year despite the pandemic. It bought three Homeplus stores, WeWork office in Samsung-dong in Seoul, Samsung Electronics office in Dallas and Qualtrics Tower in Seattle. (Reporting by Si-mok Kim)