Mirae Asset Daewoo is pursuing a plan to compensate 50% of the investment capital to 2,400 investors who suffered damage from losses from Brazilian real estate funds.
This fund is’Maps Frontier Brazil Fund No. 1’launched by Mirae Asset Management in 2012, and its main asset is the Rochabera Tower, a landmark building in Sao Paulo, Brazil.
Although 2,400 individual investors joined the fund, they suffered from difficulties such as extending the fund’s maturity from 7 years to 2 years as the Brazilian economy worsened.
As the fund loss seldom recovered, Mirae Asset Management recently announced that it would take a procedure to liquidate the fund by selling the Roshavera Tower for 1.25 billion Real.
An official of Mirae Asset Management explained, “The building value has increased by 56% from 810 million Reals to 1.25 billion Reals. It is a superior office building with no vacancy, and it is a loss in Korean won as the real value declines.”
In the future, the investment principal that will ultimately return to investors is expected to be over 50%.
An official from Mirae Asset Daewoo carefully predicted, “If the liquidation of the fund, deposit of distribution, and interest are combined, the investment principal returned to the investor is likely to be more than 80%.”
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