[PF] Maston Asset Management Raises 260 Billion KRW PF for Donghae's Tallest Hotel 'Banyan Tree Cassia Sokcho'

[Asia Economy Reporter Lim Jeong-su] Masterton Asset Management, a specialist in alternative investment assets, has raised 260 billion KRW in project financing (PF) funds for the East Coast's tallest hotel project.

According to the investment banking (IB) industry on the 15th, 'Masterton No. 88 Sokcho PFV,' established by Masterton Asset Management, secured 260 billion KRW in PF under the lead management of Korea Investment & Securities. It is a revolving loan where a portion is initially drawn and additional funds can be drawn as needed. The loan maturity is 4 years, with principal repayment due at maturity. However, early repayment is allowed if necessary before maturity.

The loan was executed in tranches according to repayment and collateral priority: senior tranche of 180 billion KRW, mezzanine tranche of 50 billion KRW, and junior tranche of 30 billion KRW. Masterton Asset Management reportedly provided the project site land and buildings as collateral during the PF loan process. Additionally, Korea Investment & Securities provided credit support for the PF loan.

Masterton Asset Management will use the raised funds for the development of the hotel 'Banyan Tree Cassia Sokcho,' located at 937 Daepo-dong, Sokcho-si, Gangwon-do. This hotel will be the tallest on the East Coast, with a total floor area of 120,560 square meters, consisting of 2 basement floors and 26 above-ground floors, and a total of 717 rooms.

Recently, Hanwha Construction was selected as the contractor, and construction began in September. Hanwha Construction plans to complete the project by October 2023. A completion guarantee contract was also signed between the developer and Hanwha Construction. If the construction permit is not obtained within 40 months after the PF loan, the borrower will be responsible for repaying the loan.

An IB industry official commented, "Residence-type hotels are exempt from real estate regulations for owners with two homes, and with the prolonged COVID-19 pandemic increasing domestic travel demand, hotel sales are expected to proceed smoothly."

This content was produced with the assistance of AI translation services.