Mirae Asset Global Investments hit its second "Jackpot" in Europe as it reaped about 170 billion won in capital gains from the sale of its Cologne City Hall in Germany. It also made about 160 billion won in profit by selling the Frankfurt building earlier.
Mirae Asset said on Dec. 2 that it has recently signed a contract to sell the Cologne City Hall building, which was held by its fund. The building is located in the central city of Cologne and is the third major office building in the city (103,593 square meters) and is 100 percent rented by the city government.
It consists of two office buildings and a parking lot. It is an office building that was developed around the biggest performance and stadium of LANXESS Arena in Germany and it excluded Arena from the purchase.
In October 2015, Mirae Asset collected investments from overseas real estate blind funds and acquired the building for 365 million euros in February 2016. The sale amount is close to 500 million euros, earning 125 million euros in profit from the sale.
In addition, the funds have been paying dividends of 8% per year based on investor equity, and its internal rate of return (IRR) is known to be in the mid to late 10% range per year.
"The reason why we succeeded in selling assets after T8 is because we shared our goal of providing high-quality assets to investors and carried out our work organically at all stages such as buying, operating, and selling," said Choi Chang-hoon, CEO of Mirae Asset Global Investments. "The Mirae Asset brand value that we have accumulated in the market has become a great asset, and we will be able to find better investment opportunities in the future."