[Asia Economy Reporter Hwang Yoon-joo] Mirae Asset Group's Brazilian real estate fund has incurred investment losses due to the sharp decline in the Brazilian real exchange rate and has entered the liquidation process.
According to the financial investment industry on the 25th, Mirae Asset Global Investments announced that it has completed the sale process of the Hosa Vera Tower in S?o Paulo, Brazil, which was a major asset of the 'MAPS Frontier Brazil Fund' established in 2012.
The liquidation process was initiated as the fund losses could not be recovered due to the worsening Brazilian economy.
The building's sale price was 1.255 billion Brazilian reals (approximately 260 billion Korean won). Although the price increased by about 56% in reals, the value in Korean won halved due to the depreciation of the real. Since 2012, the value of the real against the Korean won has dropped to about one-third.
About 2,400 individual investors subscribed approximately 80 billion Korean won to this product, which was launched as a public offering fund by Mirae Asset Global Investments. As investment losses increased, Mirae Asset Daewoo (formerly Mirae Asset Securities), the distributor, is considering a plan to pay more than 50% of the principal.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
