378 West End Avenue [Photo provided by Daishin Securities Co.]
Daishin Securities Co., a South Korean mid-sized securities company, will invest total 122.7 billion won ($109.8 million) in two buildings in New York City to seek higher returns in a low-interest environment.
The company said Tuesday that it will purchase stakes in the building on 378 West End Avenue in west Manhattan for 56.9 billion won and 400 Madison Avenue building in Midtown Manhattan for 65.8 billion won. It did not disclose the separate stake size and other details of the deals such as expected yields.
The brokerage firm plans to refurbish the 378 West End Avenue building to sell the units for residential uses. The 400 Madison Avenue, a commercial building, will be leased out for office spaces.
The company expects the investment will deliver stable returns as the two buildings are located in Manhattan’s popular neighborhoods with luxury homes and global companies, said a Daishin Securities official, expecting that the investment in the two buildings will allow the company to secure stable profits for retail investors who are seeking overseas real estate investment and for the brokerage from dollar-denominated assets.
400 Madison Avenue [Photo provided by Daishin Securities Co.]
Since the beginning of this year, Daishin Securities has been accelerating efforts to broaden its global asset portfolio. In January, the company set up a team to lead overseas real estate investment projects and took over a full stake in its U.S. affiliate Daishin America in June to make it its first U.S. subsidiary that will focus on alternative investments, especially overseas real estate properties.
In August last year, it purchased a stake worth $26 million in an office building near NYC’s landmark Time Square.
The company said it will seek more investment opportunities in other advanced markets such as Europe and Japan.
By Park Jae-young and Cho Jeehyun
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