Hyundai Asset Management Co Ltd will roll out its first overseas public real estate investment trust (REIT) this year named “Hyundai U-first REIT No.30” to close the acquisition of the British corporate headquarters building of Aegon in Scotland, the Business Post reported on June 30.
The “Hyundai U-first REIT No.30” plans to raise a total of 225 billion won ($187 million), including loans from UK lenders. The fund has a term of five-and-a-half years and is targeting a steady dividend as this UK building is occupied by the global insurance company Aegon. The fund will find investors between July 2 and July 8 through Hana Financial Investment Co. Ltd., Korea Investment & Securities Co Ltd, Hyundai Motor Securities, DB Financial Investment and SK Securities.
“The building’s single tenant Aegon has a strong credit rating of A+ by Standard & Poor’s (S&P) and a long-term lease contract is signed on a condition that rents rise 2.75% every year,” Hyundai Asset Management head of strategic investment division Chaebeom Lim said. “We are expecting a steady cash flow.”
Hyundai Asset Management had launched overseas REITs targeting individual investors with a lot of liquid financial assets and institutional investors. Last year, it has rolled out its first public real estate fund to acquire a Scottish building leased to the National Health Service Scotland and successfully raised 33.8 billion won in five days. (Reporting by Hyewon Chang)