Koramco REITs Management and Trust has been selected as the preferred negotiator for the Crescendo Building in Gwanghwamun, Seoul (formerly Kumho Art Hall).
According to the investment banking (IB) industry on the 25th, the original seller, DWS Asset Management (formerly Deutsche Asset Management), and Deloitte Anjin initially selected Mastern Investment Management as the preferred negotiator. However, after Mastern Investment Management failed to secure funding, a re-bid was conducted.
The re-bid candidates were Koramco REITs Management and Trust, Shinhan REITs Management, and Samsung SRA Asset Management, which were part of the shortlist. Koramco REITs Management and Trust was selected as the final preferred negotiator on the 24th.
The Crescendo Building is a prime office building with 7 basement floors and 18 above-ground floors, covering a land area of 3,481.5 square meters and a total floor area of 54,672.3 square meters. Completed in 2000 by Kumho Asiana Group and used as its headquarters, it was repurposed as Daewoo E&C's office after Kumho Asiana Group acquired Daewoo E&C in 2006. Subsequently, due to management difficulties, it was sold in March 2009 to JR Asset Management for 240 billion won, and in 2013, it was acquired by DWS Asset Management.
This building houses the largest law firm in Korea, Kim & Chang Law Office, which has a contract to occupy the entire building until 2029.
Kim Cheol-kyu, head of the Koramco REITs Management and Trust's investment sector, said, "The Crescendo Building is a representative core asset of Gwanghwamun, making it amenable to stable management after acquisition. Since we have managed to regain the transaction that failed once, we will strive for flawless deal closing as quickly as possible."
Koramco REITs Management and Trust, together with its subsidiary Koramco Asset Management, is a real estate management company managing assets worth a total of 33 trillion won. Last year, it acquired 'Yeoksam Arc Place' as a REITs and subsequently purchased real estate funds such as 'The Exchange Seoul' and 'NongHyup Capital Building' in succession.