Mirae Asset to earn over 25% IRR from German property investment

Mirae Asset Global Investments Co. Ltd. has agreed to sell an office building in Frankfurt for 400 million euro ($448 million) which will translate into an annual internal rate of return of over 25%, including dividend incomes.

The exit comes after the South Korean asset manager acquired Taunusanlage 8 (T8) for 280 million euros in August 2017 from Credit Suisse Asset Management.

On top of the exit proceeds of 120 million euros, the 17-story building generated dividend yields of the mid-7% range, Mirae Asset said on June 17.

It did not identify the buyer.

Sources said last month that the buyer had approached Mirae Asset first with attractive offers and Mirae decided on the earlier-than-expected exit.

Mirae has added value on the 29,163-square-meter property which was about two-thirds vacant at the time of its purchase by driving up the vacancy rate to 99%.

Tenants include law firm Linklasters, shared-office provider WeWork and mutual insurance firm FM Global.

By Mansoo Choi

bebop@hankyung.com