Fundraising - OCTOBER 19, 2016

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Samsung SRA launches first U.S. office mezzanine debt fund

by Andrea Waitrovich

Samsung SRA Asset Management has launched its first U.S. office mezzanine debt fund in partnership with J.P. Morgan Asset Management – Global Real Assets, which will act as the fund’s investment manager.

The fund raised $270 million in equity commitments, surpassing its targeted capital raise of $200 million.

The firms plan to complete the investment period in less than a year by acquiring fixed-rate mezzanine notes of up to $150 million, with a loan-to-value ratio of up to 65 percent. The fund already has closed its first investment, a $108.5 million subordinate debt position on a class A office tower in Chicago.

Samsung SRA, the real estate asset management subsidiary of Samsung Life Insurance, launched the fund to provide Korean institutional investors access to mezzanine debt on stable core office assets in six U.S. central business districts — Boston, Chicago, Los Angeles, New York City, San Francisco, and Washington, D.C.

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