Korean Asset Manager in Talks to Buy Fairmont Hotel in San Francisco for $450MM

Fairmont, Mirae Asset, Fairmont Hotel, San Francisco, Woodbridge Capital Partners, Oaktree Capital Management

A late Thursday report by The Korea Times states that Seoul, South Korea-based Mirae Asset is in negotiations to purchase the venerable Fairmont Hotel in San Francisco for $450 million or 540 billion won. That would place the sale price at just over $760,000 per room.

Mirae Asset, one of Korea’s largest financial services firms, has reportedly signed a memorandum of understanding with current owners, Woodbridge Capital Partners and Oaktree Capital Management and is ready to close on the deal within a month. The report does not quote a specific source, but it references sources familiar with the transaction. The two firms had purchased the hotel just three and a half years ago, in May of 2012 and paid $200 million plus another $20 million in renovations.

Mirae Asset plans to raise roughly 27 percent of the negotiated price from its affiliates Mirae Asset Securities and Mirae Asset Life Insurance, and the remaining amount from outside partners.

This is Mirae Asset’s second dealing with the Woodbridge and Oaktree this year alone. The three firms collaborated on another Fairmont sale in May of this year in Hawaii. This was for the Fairmont Orchid hotel on the Big Island of Hawaii, which Mirae Asset also purchased from the two firms. The Korean investment firm paid just over $200 million for that asset.

West Coast Commercial Real Estate News