Singaporean asset manager Keppel Capital has agreed to buy three commercial buildings in Seoul for a total of KRW 430bn (US$370m), as it pursues further deals in the South Korean capital.
Keppel Capital acquired the three grade A buildings through its Alpha Asia Macro Trends Fund III, the firm said in an announcement.
The seller wasn’t named, however earlier reports show the vendor to be Samsung SRA Asset Management.
The assets include the 42,300 sq.m. Yeouido Finance Tower office and retail complex located in Seoul’s Yeouido business district, also known as Korea’s ‘Wall Street’.
Yeouido Finance Tower’s tenants are predominantly from the insurance, financial and information technology sectors, including Samsung Life Insurance and Tong Yang Asset Management.
The other purchases include the 18,600 sq.m. Nonhyun Building office and retail complex in the Gangnam business district, as well as 13,000 sq.m. Naeja office building in the Gwanghwamun business district.
Nonhyun Building’s occupiers are mainly from the insurance and manufacturing sectors such as Hanwha Life Insurance and Fissler Korea, while Naeja Building is fully let to local tenants, with law firm Kim & Chang as the anchor tenant.
Keppel Capital subsidiary Keppel Investment Management will act as the local asset manager for the properties.
Keppel Investment Management CEO Robert Sung said Seoul’s office sector was expected to see limited supply over the next few years while leasing demand was projected to remain steady.
“We are confident that these favourable fundamentals, coupled with our experienced team, active asset management on the ground and robust value creation strategies, will enable us to generate good returns for AAMTF III’s investors,” he said.
“We will continue to build on this traction and actively pursue quality opportunities to strengthen our product offerings in South Korea.”
The acquisition is expected to close in 2Q19.