Manhattan Skyscraper New Coup for No. 4 U.S. Office Buyer Korea

  • Insurers invest $220 million in loan for Manhattan building
  • Korea is fourth-biggest foreign investor in U.S. offices: JLL

AXA Equitable Center.

Source: AXA Equitable
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South Korea’s institutional investors are putting money in debt to buy Manhattan and San Francisco skyscrapers as they flee record-low bond yields and falling shares at home.

A group of Korean insurance companies is investing about $220 millionBloomberg Terminal in a mezzanine loan, which is repaid after senior debt in case of a default, for the 54-story AXA Equitable Center at 787 Seventh Avenue in Manhattan this month, people familiar with the matter said last week. The Teachers’ Pension is underwritingBloomberg Terminal a combined $100 million mezzanine debt along with other domestic funds for the 32-story Westin St. Francis hotel in San Francisco, the fund’s first investment abroad in such loans.