NH Investment to acquire $100 mn debt of landmark Boston building

2017-05-20 15:20:06

(Updated: Some financing details and background were removed at the request of the sources.)

NH Investment & Securities Co. Ltd. will underwrite $100 million worth of subordinated debts backed by State Street Bank’s headquarters building in Boston, known as State Street Financial Center.

state-street-financial-center

The debts represent the entire subordinated tranche, or mezzanine III, of around 1 trillion won debts originated by the owners of the 36-story landmark office tower in Boston’s financial district, according to investment banking sources on May 18.

State Street Bank and law firm K&L Gates LLP occupy the property.

The office tower, built in 2003, has an assessed value of 1.4 trillion won.

NH Investment, a unit of South Korea’s national agricultural cooperative, will purchase the debts through a fund run by KTB Asset Management Co. Ltd.

A real estate industry source told the Korean Investors that the owners of the 97,200-square-meter building maintain a 25% stake, so the expected risk-adjusted return is relatively high.

By Daehun Kim

daepun@hankyung.com

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