April 17, 2024

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[THE INVESTOR] Mirae Asset Daewoo has extended financing for fixed-income securities worth US$375 million to fund TSX Broadway, a real estate revamp project to build a 46-story building at Times Square, according to a source familiar with the matter on Jan. 28. 

A promotional image for TSX Broadway project. Courtesy of L&L Holding

Last week, Korea’s largest securities brokerage house by capital purchased a quarter of US$1.13 billion worth of senior notes that had been issued by Goldman Sachs in December.

Mirae Asset has resold the first-tier liabilities to Hanwha Life Insurance and Hanwha General Insurance, which jointly invested US$150 million. The firm is seeking other participants for the remaining US dollar denominated outstanding debt with some 7 percent interest.

“The company invested in senior loans earlier closed by Goldman Sachs and has yet to finish selling it to local institutional investors,” a source told The Investor on condition of anonymity. “Mirae Asset had been involved in the deal from the beginning.”

TSX Broadway, a US$2.5 billion hotel-and-retail redevelopment project also known as EB-5 project, is designed to build a landmark tower in Manhattan, New York. The project involves a revamp to lift the century-old Palace Theater by 30 feet. The project is being undertaken by a consortium of developers led by L&L Holding Co. The renovation is slated to be complete by 2021.

Before the construction kicks off, the project was fully funded in December, partly by Goldman Sachs, as well as US Immigration Fund, which offered a US$494 million mezzanine loan.

By Son Ji-hyoung (consnow@heraldcorp.com)