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NH Investment Invests $100 Mil. in Boston Landmark Building

May 19, 2017 11:16|May 19, 2017 11:49
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NH Investment Invests $100 Mil. in Boston Landmark Building
NH Investment & Securities will spend US$100 million to invest in a large office building in the central business district of Boston. According to investment banking industry sources on May 18, NH Investment is set to acquire subordinated bonds worth $100 million based on underlying assets of State Street Financial Center (One Lincoln Street) as collateral. The 36-story 97,000-square-meter building is currently used by State Street Corp., one of America's top-five banking corporations.

The building was acquired by a U.S. real estate management company in 2006. The current price is estimated at $1.24 billion. The lease contract with State Street will expire in 2023, with options to renew the ten-year contract twice more. International law firm K&L Gates is also leasing some of the floors.

Once the acquisition process is over, NH Investment will start reselling the stake to domestic institutional investors. The securities firm expected that the investment will be able to yield an annual return of 6.9 percent for five years.

A real estate industry official said, "Given the owners still hold a 25-percent stake in the building, the risk-adjusted return is quite high."