Colliers Korea, a unit of global real estate asset management group Colliers, has been chosen as the adviser for the sale of Signature Tower in central Seoul by IGIS Asset Management Co. – a deal expected to fetch at least 1 trillion won ($689 million), marking one of the country’s largest commercial property deals this year.
The selection of the sales manager comes about a month after IGIS sent out a request for proposals to brokerage firms.
The sale process has now formally kicked off, with Colliers handling the deal, according to IGIS on Friday.
The sale is seen as a key bellwether for the recovering office market in Seoul, where investor sentiment has been gradually improving following a period of sluggish deal activity.
Completed in 2011, the two-tower complex offers nearly 100,000 square meters of office space with 17 floors above ground and five floors below.
Kumho Petrochemical Co. has been using the complex as its headquarters since 2012.
IGIS acquired the property for 720 billion won in 2017 from Shinhan Asset Management Co., formerly Shinhan BNP Paribas Asset Management, with 140 billion won in backing from a real estate fund.
The National Pension Service, Korea’s state-run pension fund, invested in the fund. With the fund approaching maturity, IGIS is bringing the building to market.
Industry watchers said the sale is expected to draw more than 1 trillion won, reflecting strong demand for modern office assets in Seoul’s central business district and its roster of blue-chip tenants.
By Kyung-Jin Min
min@hankyung.com
In-Soo Nam edited this article.
