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Ascendas, through its subsidiary Ascendas Asset Management, launched its third office fund in South Korea, the Ascendas Korea Office Private Real Estate Investment Trust 3 (AKOPREIT3).
A seven-year closed private fund, AKOPREIT3 recently acquired Jongro Place (pictured), a Grade A office building situated within the central business district of Seoul, South Korea, for S$289.6 million.
Lee Ho-Gil, CEO of Ascendas Asset Management, noted that the five-year-old property is “almost fully occupied, and its high connectivity and visibility in an up-and-coming area of Seoul’s CBD has already attracted the attention of numerous blue-chip companies who seek a suitable location to set up their offices.”
Notably, Jongro Place is strategically located near four subway lines, overlooking the UNESCO World Heritage site, Jongmyo Shrine.
With net lettable area of 23,000 sq m, the property comprises 14 floors, featuring large floor plates and a ceiling height of 2.7 metres with 202 car park lots. It enjoys a 97 percent occupancy rate, with anchor tenants including Korea’s top e-commerce operator, Coupang, and global banking group, Citigroup.
Ascendas revealed that the acquisition of Jongro Place effectively increased the group’s assets under management in South Korea by 23 percent from KRW 1.1 trillion (S$1.3 billion) to KRW 1.3 trillion (S$1.6 billion).
“Since making our first foray in the Republic of Korea in 2002, we have grown our portfolio to five properties. As a fast-growing developed country, South Korea continues to hold huge potential for businesses. At Ascendas, we endeavour to offer best-in-class assets that create value and optimize returns for our stakeholders and investors,” said Ascendas president and group CEO Manohar Khiatani.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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