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South Koreans pay $5.8B for Anbang hotel portfolio

Mirae Asset Global Investments announced that it has entered into a definitive agreement to acquire a portfolio of 15 U.S. luxury hotels from Anbang Insurance Group Co.

The reportedly $5.8 billion deal would be the biggest cross-border real estate investment by a South Korean Company and solidify Mirae’s presence in the U.S. real estate market.

Choi Chang-hoon, head of the real estate unit at Mirae Asset, commented, “This project is the result of Mirae Asset’s continued effort in the overseas real estate market since 2003. We will continue to strive to provide investors with the opportunity to diversify their portfolio with core real estate assets located in key, global markets.”

The portfolio, which Anbang purchased from Blackstone in 2016, consists of market-leading luxury hotels and resorts located in high barrier-to-entry urban and resort markets, with limited supply growth. The portfolio, comprised of approximately 720,000 square feet of meeting space and 6,912 rooms, is positioned to continue to benefit from the approximate $400 million in capital expenditures that Anbang has invested since 2016.

JLL Hotels & Hospitality is the buy-side valuation and financing advisor on behalf of Mirae Asset. Bank of America Merrill Lynch is acting as sole financial advisor to Anbang on the sale of the portfolio.

The iconic 15-property luxury hotel portfolio includes the JW Marriott Essex House in New York; Ritz-Carlton Half Moon Bay and Westin St. Francis in San Francisco; Montage Laguna Beach in Southern California; Four Seasons Silicon Valley; Fairmont Scottsdale Princess and Four Seasons Scottsdale in Arizona; Four Seasons Jackson Hole in Wyoming, and InterContinental Hotels in Chicago and Miami.

Anbang still owns the Waldorf Astoria hotel which it bought from the Hilton Group for $1.95 billion in 2015.

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