Singapore’s Keppel Enters Deal To Buy Seoul Office Bldg
SOUTH KOREA – Singapore-based Keppel Corporation has entered into a deal on Monday to jointly purchase a freehold 15-storey office tower in the central business district (CBD) of Seoul, South Korea for KRW220 billion (S$228.7 million), reported The Edge on Monday afternoon (19 December, SGT).
Known as the Samhwan Building, the commercial property has gross floor area (GFA) of about 338,019 sq ft. It’s located in Jongno-gu and is close to historical Korean palaces. It also offers breath-taking views of its vicinity.
The office tower is just a stroll away from the Anguk Station on the Seoul Subway line III, and a short drive to the other key business districts of Seoul, namely Yeouido and Gangnam.
Once the acquisition of the commercial property is completed and relevant regulatory permit has been obtained, Keppel Corporation will carry out asset enhancement initiatives (AEIs).
These include expanding the office building horizontally to increase the asset’s lettable office space and renovating its existing spaces in an attempt to boost its real estate value.
The buyer will also add green features to enhance Samhwan Building’s performance and operational efficiency. These include smart lighting systems, high-performance facades, intelligent building controls, and energy-efficient cooling and heating systems, as well as indoor environmental quality monitoring.
“When refurbishment works are completed, Samhwan Building will be a showpiece in South Korea of Keppel Land’s Sustainable Urban Renewal capabilities, which leverages digital technologies to retrofit, future-proof and extend the lifespan of commercial buildings,” said Keppel Land’s Chief Executive Louis Lim, who added they are seeing growing demand for quality office spaces in Seoul.
The acquisition of Samhwan Building is expected to close by the end of this month. Upon closing, Keppel Land will own a 39.5 percent interest in the asset, while Keppel Asia Macro Trends Fund IV (KAMTF IV) and KB Bank Discretionary Fund will respectively hold 31.1 percent and 29.4 percent.
“Keppel Capital has managed close to $3.4 billion of assets with gross floor area of 6.2 million sq ft in South Korea since 2004, and we are confident that our experienced team, active asset management on the ground and robust value creation strategies, will enable us to generate good returns for our funds’ investors,” added Keppel Capital’s CEO Christina Tan.