Singapore’s GIC Private Ltd., the world’s sixth-largest sovereign wealth fund, is set to select a preferred bidder to sell a landmark building valued at about 1.5 trillion won($1.1 billion) in Seoul.
GIC and CBRE Group Inc., the manager of the sale of Seoul Finance Center (SFC), opened bidding for the commercial building in the South Korean capital’s central business district on Monday, according to investment banking industry sources.
Global real estate investment companies including BentallGreenOak (BGA), as well as local asset managers such as Koramco REITs Management and Trust Co. and its subsidiary Koramco Asset Management Co. joined the bidding, the sources in Seoul said. Koramco REITs and Koramco Asset participated in the race using different funds.
GIC plans to pick a preferred bidder among them after individual interviews in the near term.
TO SELL LANDMARK BUILDING BOUGHT AFTER 1997-98 ASIAN CRISIS
BGO has invested in South Korean real estate such as office buildings in Seoul and Pangyo, the country’s so-called Silicon Valley.
The investment firm, which manages $85 billion in assets, has tendered for an office building in Gangnam, the upscale and modern center of Seoul.
GIC with about $770 billion in assets under management has been considering selling the the 30-story SFC bought for 350 billion won in 2000 after the 1997-98 Asian financial crisis.
The sovereign wealth fund has been a magnate in the South Korean real estate market for more than 20 years since its entry into the country as it owns landmark offices such as Gangnam Finance Center.
By Byeong-Hwa Ryu
hwahwa@hankyung.com
Jongwoo Cheon edited this article.
