KTB Securities Invests in 'UBS Tower' in New Jersey, USA

[Asia Economy Reporter Lim Jeong-su] KTB Investment & Securities invested in the UBS Tower in New Jersey, USA, utilizing the BNK Asset Management private equity fund. UBS Financial Services has agreed to lease the building until 2035, ensuring stable returns.

According to the investment banking (IB) industry on the 29th, KTB Investment & Securities invested approximately 50 to 60 billion KRW in the private equity fund ‘BNK US Value General Private Real Estate Investment Trust No. 3’. BNK Asset Management executed the funds through an indirect investment method by contributing to another fund that purchased the UBS Tower, with the actual investment amount reported to be slightly over 50 billion KRW.

The UBS Tower in New Jersey is an office tower completed in 1988, located at 1000 Harbor Boulevard, Weehawken, New Jersey, USA. It underwent renovation last year, and UBS Financial Services signed a long-term lease agreement (master lease) to use the building until 2035. Currently, 14 years remain on the master lease term.

The investment funds were raised through securitization. The private equity fund’s subscription profit securities were transferred to an SPC, which then issued asset-backed bonds based on these securities. KTB Investment & Securities, as a fund subscriber, provided credit support such as capital replenishment commitments to the SPC.