Samsung SRA Asset Management has appointed JPMorgan Asset Management’s global real assets division as the manager of its first mezzanine debt fund for US office investments, according to a statement.
The announcement said the vehicle was oversubscribed and closed at $270 million. The pool of capital will be fully deployed within a year by acquiring fixed-rate mezzanine notes of up to $150 million, with a loan-to-value ratio of up to 65 percent.
The fund has already closed its first investment, a $108.5 million subordinate debt position on a Class A office tower in Chicago, the release said.
“This partnership with JPMorgan Asset Management marks a new phase of growth for us as we build on our successes in global real estate investing with our first commingled mezzanine debt fund,” Young Chai, Samsung SRA’s chief investment officer, said in the statement.
With the help of JPMorgan, the fund will provide Korean institutional investors access to mezzanine debt on stable core office assets in six important US business districts: New York, Boston, Chicago, San Francisco, Washington, DC and Los Angeles.
Seoul-based Samsung SRA manages over $2 billion in assets and invests in real estate equity and debt. New York-based JPMorgan’s global real assets division oversees $82 billion and invests in infrastructure and maritime assets as well as real estate and real estate investment trusts.