Meritz RE Asset Management, a subsidiary of Korea-based Meritz Financial Group, has invested 80 billion won ($72 million; €64 million) indirectly into 30 commercial properties in Germany.
According to market sources, the manager is partnering with three Korean domestic institutional investors to raise the capital, which will be used to acquire senior mortgage loans secured by private equity firm Apollo from an international bank. The target return is more than 4 percent over the next five years.
The investment portfolio is mostly office buildings and hotels in major German cities, such as Munich, Cologne and Frankfurt. The average remaining lease term of tenants in these buildings is more than five years.
Like many other Korean investors, the company has been actively looking at deals in tier-one cities in the US and Europe. These properties are believed to be the most resilient during a financial crisis.
Meritz has more than 20 years’ experience investing in Korea and overseas. Its first closed-ended fund was listed on NYSE in 1991 and the manager has an investor-base of major US and European pension and endowment funds.