Canadian CRE is an “untapped market” for Korean capital

A Korean real estate fund manager has made its first large loan secured on Canadian commercial real estate.

KTB Asset Management has originated a C$165 million non-recourse, 5-year fixed-rate loan secured by Hotel X Toronto.

The 404-guest-room hotel is located within the city’s Exhibition Place and had a soft opening in April 2018. The hotel is owned by a limited partnership consisting of New York-based Henry Kallan, Alex Rovt, and Joshua Durst and is operated by the Library Hotel Collection, which owns and operates seven luxury boutique hotels worldwide.

Housed in a tower that rises 30 storeys above the waterfront, Hotel X is home to a private members sports club, rooftop bar, 250-seat cinema, and forthcoming spa. It has spectacular views of Downtown Toronto and Lake Ontario and is set in 6 acres of beautiful gardens.

The loan origination marks a landmark for Korean investment in the Canadian CRE market and Jaesang Eum, Head of Global Alternative Investments at KTB suggests there will be more to come.

“Although Korean investors have been one of the most active global real estate investors over the past 5 years, this is one of the first large loans originated by them in the Canadian market” he said. “This is an untapped market for Korean investors and we look forward to bringing more Korean capital to the Canadian real estate market.”