Hyundai Motor Securities building in Yeouido (Courtesy of Hyundai Motor Securities)
Koramco Asset Management Co. has put the Hyundai Motor Securities building in the Yeouido business district (YBD) on the market, a deal expected to fetch between 300 billion-350 billion won ($226 million-$263 million), according to people with knowledge of the matter on Thursday.
Seoul-based Koramco has recently sent requests for proposal to real estate sales advisors to kick off the sale process, one year before the expiration of the fund in October 2025 investing in the prime office.
The building has 20 floors above ground and six floors underground, measuring 40,439.67 square meters and houses Hyundai Motor Co. as an anchor tenant.
Its estimate value represents up a 13%-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-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 in the lack of properties up for sale in the area. 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 buildingr worth 31 million won per 3.3 square meters. Woori Asset Management was picked 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 around 23 million won per 3.3 square meters.
GANGNAM, CENTRAL BUSINESS DISTRICTS
Koramco is also seeking to buy the KOREIT Tower, measuring 34,983.65 square meters, in the Gangnam business district (GBD) from Korea Real Estate Investment & Trust (KOREIT) and The Exchange Seoul Office building in the central business district (CBD) in Seoul from Singapore’s GIC.
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 around 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 has 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 area
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 South Korea this year.
GBD is one of Seoul’s three major business districts, including CBD and YBD.
In the CBD, Seoul Finance Center, Crescendo Building, KDB Life Tower and Crystal Square have been on the market.
By Byung-Hwa Ryu
hwahwa@hankyung.com
Yeonhee Kim edited this article
