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Keppel Capital’s Alpha Asia Macro Trends Fund III (AAMTF III) has agreed to acquire three Grade A freehold commercial buildings in three of Seoul’s major business districts from a Korean asset management company for 430 billion won ($510 million).
The 15-storey Naeja building is located in the Gwanghwamun central business district (CBD). Completed in 2000, the freehold Grade A office development features 13,000 sq m of gross floor area (GFA).
Yeouido Finance Tower, on the other hand, is a 21-storey retail and office mixed-use development in the Yeouido business district (YBD), with about 42,300 sq m of GFA.
Meanwhile, the 20-storey Nonhyun Building is an office and retail mixed development in the Gangnam business district (GBD). With a GFA of about 18,600 sq m, the development comprises about 16,700 sq m of office space and about 1,900 sq m of retail space.
In an SGX filing, Keppel Capital revealed that Keppel Investment Management, the company’s asset management arm in South Korea, will be the local asset manager of the three properties.
“The acquisition of the portfolio is in line with AAMTF III’s strategy of creating value and driving returns for our investors. These prime commercial properties are well-located in major business districts of Seoul and have good connectivity and high accessibility to public transportation,” said Alvin Mah, CEO of Alpha Investment Partners which manages AAMTF III.
Keppel Investment Management CEO Robert Sung noted that real estate investment has been strong in Seoul, thanks to both domestic and foreign investors.
“The office sector is expected to see limited supply over the next few years while leasing demand is projected to remain steady,” he said.
“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. We will continue to build on this traction and actively pursue quality opportunities to strengthen our product offerings in South Korea.”
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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