JP Morgan Asset Management will serve as investment manager for Samsung SRA Asset Management’s second US office mezzanine debt fund.
Last month, IPE Real Assets Reported that Samsung SRA had closed its second US real estate debt fund, raising KRW360bn (€270m) from Korean investors.
It raised KRW50bn more than the first fund, launched in 2016, but like its predecessor will focus on the US office market, investing in B-notes and mezzanine debt. The investment manager for the first fund was JP Morgan’s global real assets division.
Young Chai, the CIO at Samsung SRA, said all the investors in the first fund have reinvested in the second fund, adding that some have even increased the levels of their commitments.
”This is a clear validation that the investors are satisfied with our performance in the first fund,” he said.
“JP Morgan Global Alternatives’ unparalleled reputation, on-the-ground teams and in-house experts help us to maximise deal access and accelerate underwriting speed, thereby delivering superior risk-adjusted returns for our investors.”
Candace Chao, the head of real estate Americas mezzanine acquisitions for JP Morgan Global Alternatives, said: “Mezzanine debt continues to be an attractive investment option for investors, especially at this point in the cycle, as it provides current income and downside protection.
“Samsung SRA is a sophisticated real estate investor and we are pleased to partner with them again with the launch of Fund II.”
Samsung SRA, the real estate asset management subsidiary of Samsung Life Insurance, will target six gateway cities – New York, Boston, Washington DC, Chicago, San Francisco and Los Angeles – with loans with up to 65% loan-to-value ratios.