Koramco puts Hyundai Motor Securities building on market

There is a lack of office buildings for sale in Yeouido compared with other major business districts in Seoul

Hyundai Motor Securities building in Yeouido, Seoul (Courtesy of Hyundai Motor Securities)
Hyundai Motor Securities building in Yeouido, Seoul (Courtesy of Hyundai Motor Securities)
Byung-Hwa Ryu 2
2024-09-20 15:34:01 hwahwa@hankyung.com
Real estate

Koramco Asset Management Co. has put the Hyundai Motor Securities building in Seoul's Yeouido business district (YBD) on the market. The deal is expected to fetch between 300 billion and 350 billion won ($226 million to $263 million), according to people with knowledge of the matter on Thursday.

Seoul-based Koramco recently sent requests for proposal to real estate sales advisors to kick off the sale process, one year before the Oct. 2025 expiration of the fund investing in the prime office real estate.

The building has 20 aboveground floors and six floors below ground, with a total floor area of 40,440 square meters housing Hyundai Motor Co. as an anchor tenant.

Its estimated value represents a 13% to 30% premium of Koramco’s purchase price of 266.6 billion won, reflecting the transaction price of commercial buildings in the Yeouido area: 25 million to 30 million won per 3.3 square meters.

Koramco acquired the property from KB Asset Management Co. in 2020.

YEOUIDO BUSINESS DISTRICT

Koramco believes now is the right time to unload the Hyundai Motor Securities building given the dearth of properties up for sale in the YBD. Looming interest rate cuts by the Bank of Korea are expected to relieve the financial burden on its potential buyer.

Other buildings up for grabs in the YBD include the Mirae Asset Securities building worth 31 million won per 3.3 square meters. Woori Asset Management was picked as its preferred buyer.

Koramco Asset and its affiliate Koramco REITs Management and Trust Co. are leading the domestic office investment market.

It is tipped to buy the NH Nonghyup Capital Building in the YBD for about 23 million won per 3.3 square meters.

GANGNAM, CENTRAL BUSINESS DISTRICTS

Koramco is also seeking to buy the KOREIT Tower, spanning 34,984 square meters, in the Gangnam business district (GBD), from Korea Real Estate Investment & Trust (KOREIT) and The Exchange Seoul Office building in Seoul's central business district (CBD) from Singapore’s GIC.

Arc Place
Arc Place

Earlier this year, it purchased the Arc Place, a premium office tower in the CBD, from Blackstone for 791.7 billion won.

Its divestments this year include the K-Square City in the CBD, sold to Pacific Asset Management for about 400 billion won, and the Golden Tower in the Gangnam business district (GBD) unloaded to Singapore's real estate investor CapitalLand Investment for 440.8 billion won.

It also sold the Seocho Tower in the GBD, housing GS Engineering & Construction Co. to Shinhan Alpha REIT Co., for 202.3 billion won last month.

Samsung Group is poised to buy The Asset office tower in the Gangnam business district
Samsung Group is poised to buy The Asset office tower in the Gangnam business district

Koramco REITS Management is poised to sell The Asset in the GBD, used as Samsung Fire & Marine Insurance Co.’s headquarters, to Samsung Group for more than 1 trillion won, in what would be the largest-ever office transaction in Korea this year.

The GBD is one of Seoul’s three major business districts along with the CBD and YBD.

In the CBD, the Seoul Finance Center, Crescendo Building, KDB Life Tower and Crystal Square have been on the market.

Write to Byung-Hwa Ryu at hwahwa@hankyung.com
 

Yeonhee Kim edited this article
#KoramcoAssetManagement #HyundaiMotorSecurities #KBAssetManagement #KoramcoREITsManagementandTrust #ShinhanAlphaREIT #ArcPlace #NHNonghyupCapitalBuilding #KOREITTower #KOREIT #TheExchangeSeoul #K-SquareCity #GoldenTower #Korearealestate #Seoulofficebuildings

Daishin Securities shelves main office building sale to NH-Amundi

Daishin Securities shelves main office building sale to NH-Amundi

Daishin Securities headquarters in Euljiro, Seoul (Courtesy of Yonhap) Daishin Securities Co. has called off a plan to sell its headquarters building in a central business district of Seoul to NH-Amundi Asset Management Co. for 660 billion won ($497 million) after the latter failed to recruit i

IGIS puts NPS-backed building in Seoul on sale for $294 mn

IGIS puts NPS-backed building in Seoul on sale for $294 mn

Noon Square (File photo by IGIS Asset Management) IGIS Asset Management Co., one of Asia's largest real estate investment firms, is seeking to sell a building backed by South Korea’s National Pension Fund (NPS) in Seoul for up to 400 billion won ($293.6 million).IGIS on Thursday sent requ

Hanwha REIT to buy Hanwha Group office building for $584 mn

Hanwha REIT to buy Hanwha Group office building for $584 mn

Hanwha Group's headquarters building (Courtesy of Hanwha) Hanwha REIT Co., a real estate investment arm of South Korea’s No. 7 conglomerate Hanwha Group, said on Monday that it is poised to acquire the group’s headquarters building for 808 billion won ($584.2 million) from Hanwha Li

Seoul prime office deals at 10-year low on rate uncertainty

Seoul prime office deals at 10-year low on rate uncertainty

Central Business District (CBD) of Seoul (Courtesy of Getty Images) Prime office transactions in Seoul hit a 10-year low in the second quarter due to delayed fundraising amid uncertainties of the central bank’s rate cut timeline, global real estate services provider Savills plc’s So

Keppel REIT to sell Seoul-based prime office T Tower

Keppel REIT to sell Seoul-based prime office T Tower

T Tower in Seoul (Courtesy of JLL) Singapore’s Keppel REIT Management Ltd. is set to divest of its Seoul-based prime office building T Tower near Seoul Station.Real estate managers Jones Lang LaSalle (JLL) and Colliers, the lead managers for the sale, said on Tuesday they will select a pr

Blackstone sells prime Seoul office building for $586 mn to Koramco

Blackstone sells prime Seoul office building for $586 mn to Koramco

Arc Place, a prime office building in Seoul's upscale Gangnam district Blackstone Inc. completed selling off Arc Place, a prime office building located in Seoul's upscale Gangnam area, to Koramco REITs Management and Trust Co. for 791.7 billion won ($586.4 million) six months after the local re

Korean office, warehouse transactions plunge in Q1-Q3

Korean office, warehouse transactions plunge in Q1-Q3

Gangnam area, the most commercial district in the South Korean capital Seoul (Courtesy of Getty Images) The South Korean commercial real estate market saw its transaction value during the first three quarters of this year reach 10.9 trillion won ($8.4 billion), dropping 49.3% on-year driven by

Mirae Asset Securities puts its Yeouido building on the market

Mirae Asset Securities puts its Yeouido building on the market

Mirae Asset Securities Building in Yeouido district, Seoul  Mirae Asset Securities Co. is seeking to sell off its Seoul-based office building, the value of which is estimated at around 300 billion won ($223.7 million), banking sources said on Wednesday. The brokerage arm of South Korea&rsq

KKR to buy Namsan Green Building in Seoul for $186.7 million

KKR to buy Namsan Green Building in Seoul for $186.7 million

KKR & Co. Inc. has agreed to buy Namsan Green Building in a central office district in Seoul for an estimated 250 billion won ($186.7 million).The New York-based leading private equity firm with assets under management of $504 billion announced on Friday that it signed a contract to buy th
(* comment hide *}