KIS purchases gov’t building in US
[THE INVESTOR] Korea Investment & Securities has raised funds from institutional investors to purchase the Sentinel 2 building in Washington D.C, for about 200 billion won (US$184 million), according to industry sources on Nov. 28.
KIS will reportedly acquire the medium-sized office building located in NoMa, Washington D.C., early next month. Domestic institutional investors will raise 80 billion won, and the remaining 120 billion won will be financed through loans.
The Sentinel building located in Washington D.C, USA.
The Sentinel 2 building is a commercial property located close to Union Station, one of the nation‘s largest railway stations. with a floor space of 25,900 square meters with 4 underground floors and 12 ground level floors that was completed in 2013. Currently the building encompasses lease contracts with the US federal government and local government departments that will run for 13 years. The Investment period is 5 years, and expected return is 7-8 percent per year
There is speculation whether KIS’s deal will revive Korean investments in the US real estate market. In addition the won-dollar exchange rate has recently fallen, creating a favorable environment for investors.
Up until this beginning of 2017, Korean investors were forced to pay a maximum of 1.4 percent commission for acquisition of US real estate but that amount has been decreased to 0.3 percent.
“The Donald Trump administration is pushing for corporate tax exemption that will be beneficial for investors looking to acquire US real estate” said an investment banking official.
By Alex Lee (email@example.com)