Shinhan REITs Management is expected to acquire BNK Digital Tower, an office building in affluent Gangnam, southern Seoul, after offering about 457 billion won ($311.4 million).
According to sources in the investment banking industry on Thursday, BNK Asset Management Co. has chosen the real estate investment firm wholly owned by Shihan Financial Group Co. as the preferred bidder for BNK Digital Tower.
Shinhan REITs has proposed 40.7 million won per 3.3 square meters, equivalent to 457 billion won based on the building’s total floor area, according to sources.
It won the priority right to negotiate the acquisition of the building after beating other contenders such as Kyobo AIM Asset Management, Koramco Asset Management and D&O REITs Management, an LG Group affiliate.
PRIME OFFICE BUILDING IN GANGNAM
Located in Gangnam, BNK Digital Tower is a mid-sized building, spanning seven basement floors and 20 above-ground floors, with a total floor area of 37,182 square meters.
It is one of BNK Financial Group Inc.’s three Seoul hub offices.
BNK Financial Group companies jointly purchased the building for 350 billion won in 2020.
Sources said BNK Asset Management hoped to use proceeds from the sale of the BNK Digital Tower to finance its failed acquisition of the Hyundai Motor Securities building in the financial district in Yeouido.
Last Friday, BNK Asset Management hit a snag in its bid to buy the Hyundai Motor Securities building in central Seoul after the building’s main tenant, Hyundai Motor Securities Co., has exercised its right of first refusal.
It originally planned to operate and eventually redevelop the building, possibly integrating it with the adjacent BNK Financial Tower to create a larger “BNK Town.”
Once Shinhan REITs succeeds in acquiring BNK Digital Tower, it is expected to add it to the portfolio of Shinhan Alpha REIT Co., which was listed on Korea’s main Kospi bourse in 2018.
The REIT owns 11 real estate assets, including City Square in the central business district in Seoul and the GS Seocho Tower in the Gangnam business district.
By Gyeong-Jin Min
min@hankyung.com
Sookyung Seo edited this article.
