[Alpha Biz= Kim Sangjin] The Financial Supervisory Service's (FSS) Dispute Mediation Division has concluded that there is no fault in the allegations of incomplete sales related to the U.S. real estate fund of Mirae Asset Asset Management, which had attracted numerous investor complaints.
The fund in question is the first domestic public real estate fund focused on U.S. real estate, which saw asset prices decline due to the sluggish overseas real estate market, resulting in some losses for investors. Recently, there have been increasing investor complaints about the Trianon Fund in Germany and the Belgian real estate fund, which are now facing confirmed losses. As a result, attention is also focused on whether these cases will be successfully mediated.
According to the financial authorities and investment industry on Tuesday, the FSS Dispute Mediation Division rejected the complaints filed by investors of the "Mirae Asset Maps U.S. Real Estate Investment Trust 9-2 (Maps 9-2 Fund)" in the fourth quarter of 2023. The investors were informed that there were no significant allegations found by the FSS.
In late 2023, investors in the Maps 9-2 Fund filed complaints with the FSS against Mirae Asset Securities, which sold the fund, and Mirae Asset Asset Management, which managed it. The fund is the first domestic public real estate fund focused on U.S. real estate, specifically investing in office buildings in the Dallas area of Texas. When it was launched in 2016, it sold out 3 trillion KRW (about $2.5 billion) in just 10 days.
However, due to the global interest rate hike and the decline in real estate prices, the fund's manager decided to sell the property at a price approximately 30% lower than the dollar value at the time of purchase, ahead of the fund's maturity. The fund had purchased the building for 978.6 billion KRW (about $843.6 million) in 2016 and sold it for 787.9 billion KRW (about $580 million).
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
