Meritz RE Asset Management invests total $183 mn in Google's buildings in U.S.

Google Inc.’s new head office “Moffett Gateway,” two seven-story office towers overlooking Silicon Valley.

Meritz RE Asset Management, a subsidiary of Korea-based financial holding company Meritz Financial Group Inc., has invested a total of 220 billion won ($182.9 million) in Google Inc.’s new headquarters (HQ) in California and its office in New York this month in hopes of getting 5 percent or higher returns on each investment.

According to the investment banking industry Thursday, Meritz RE jointly invested over 120 billion won with several Korean insurers in “Moffett Gateway,” two seven-story new office towers that are entirely leased by Google, in the form of senior mortgage-backed securities with an aim to raise annual returns of 5 percent. Moffett Gateway has 56,930 square meters (612,796 square feet) of office space and a fitness center, offering views of the Santa Cruz Mountains and Silicon Valley. It was recently completed and will be occupied by Google over the next 10 years.

Meritz RE earlier this month invested about 100 billion won in Google’s another office building in Manhattan, New York, “85 10th Avenue” jointly with two Korean institutional investors, according to sources. The Korean investors have set a target of generating an annual return of 6 percent based on their investment in junior mortgage-backed bonds issued on security of 85 10th Avenue. The building is a 58,993-square-meter, (635,000 square foot) 11-story office building located on the border of West Chelsea and the Meatpacking District. It is where Nabisco baked its first Oreo cookies. After renovation, it has been rented out to Google in 2014.

Merits RE has shown an insatiable appetite in overseas real estate, investing a total of 450 billion won in its first year of its inception this year. It invested 150 billion won in the Gas Company Tower located in Los Angeles in July, and 80 billion won in commercial properties in Germany in September.

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