Koramco REITs Management & Trust Co., a leading South Korean real estate firm, has been chosen as the preferred negotiator to buy the Crescendo Building in central Seoul.
Koramco said it beat two short-listed rivals – Shinhan REITs Management Co. and Samsung SRA Asset Management Co. – to win the bid.
“Crescendo is a core asset in the central business district in Seoul and can be stably managed after acquisition. We aim to close this deal as soon as possible,” said Kim Cheol-kyu, head of Koramco REITs’ investment division.
Initially, the seller, DWS Asset Management, formerly known as Deutsche Asset Management, and its advisor Deloitte Anjin LLC, picked Mastern Investment Management Co. as the preferred bidder.
Seoul-based Mastern, however, failed to secure funds to buy the building.
The seller opened a second auction and selected Koramco as the preferred buyer.
KIM & CHANG FULLY OCCUPIES CRESCENDO BUILDING
The Crescendo Building, formerly Kumho Art Hall, in Gwanghwamun, Seoul, is a prime office building with seven basement floors and 18 above-ground floors, covering a land area of 3,481.5 square meters and a total floor space of 54,672.3 square meters.
Built in 2000 by Kumho Asiana Group as its headquarters, the building later served as Daewoo Engineering & Construction Co.’s headquarters after Kumho Asiana acquired the company in 2006.
Due to financial difficulties, Kumho Asiana sold the building to J-R Asset Management Co. (J-R AMC) for 240 billion won ($166 million) in March 2009. And then the building was acquired by DWS Asset Management in 2013.
The building is now fully occupied by Kim & Chang, the largest law firm in Korea, ensuring stable rental income.
The tenant has a lease agreement to use the building through 2029.
By Gyeong-Jin Min
min@hankyung.com
In-Soo Nam edited this article.
