This article was published on May 26, 2025, at 4:40 p.m. on the ChosunBiz MoneyMove site.
High-quality office properties are flooding the market in Bundang and other core business districts in Seoul and Gyeonggi Province. Thanks to low interest rates, properties that were traded during a period of active commercial real estate transactions are coming back to the market in line with the fund's maturity.
On the 26th, according to the investment banking (IB) industry, KT Investment Management sent a request for proposal (RFP) to commercial real estate advisory firms and accounting firms to sell the Eulji Twin Towers held through the 'K-Reality No. 10 REITs'. KT Investment Management established the No. 10 REITs in 2019 and acquired Eulji Twin Towers A.
The operation period of the No. 10 REITs is seven years, with the maturity set for the end of June next year. In October 2019, KT Investment Management borrowed about 290 billion won from Samsung Fire & Marine Insurance at an interest rate of approximately 3.40% to purchase Eulji Twin Towers. It is estimated that the quicker sales process is due to a recent increase in CBD office listings and plans for large-scale building supply in the future.
Eulji Twin Towers, located in Euljiro 4-ga, is an asset completed in May 2019. It is a large office building with a total floor area of 140,629 square meters (approximately 42,000 pyeong). Currently, Daewoo E&C, BC Card, and Kbank are tenants. As of the end of last year, the rental rate was 94.2%, with some vacancies remaining.
Industry voices suggest that the success of the sale of Eulji Twin Towers remains to be seen. Currently, multiple office properties in the CBD, including Signature Tower and KT&G Euljiro Tower, as well as Seoul Square and Gongpyeongdong G1 Office, are seeking buyers. Additionally, the development of the Namsan N Tower near Myeongdong Station, which will have a total floor area of approximately 6,300 pyeong, and the Gongpyeong District 15 and 16 offices, with an area of about 43,000 pyeong, is planned.
Koramco REITs Management and Trust is accelerating the sale of Bundang Doosan Tower, a core office asset in the Bundang business district (BBD). Ahead of the fund's maturity early next year, the plan is to complete the transaction within this year. Koramco has chosen Korea Investment & Securities as the lead manager, and it has been confirmed that Korea Investment & Securities has assigned Deloitte Anjin for advisory work.
In 2021, Koramco purchased Bundang Doosan Tower, which the Doosan Group was seeking to sell as part of a restructuring effort, for about 620 billion won. At the time, Koramco established the Bundang Doosan Tower REITs to raise funds, and it is reported that Korea Investment & Securities, which participated as a shareholder in the REITs, agreed to take on the lead role in the future asset resale.
Bundang Doosan Tower, located at 161 Jeongja-dong, Seongnam City, Gyeonggi Province, is a newly built office building with seven basement levels and 27 above-ground levels, with a total floor area of 128,550 square meters (approximately 39,000 pyeong). Since its completion in 2020, it has been used as an office by the Doosan Group. Recently, the sellers have been preparing for bids by distributing investment memorandums (Teaser Memorandum) to asset management companies and strategic investors (SIs).
Deloitte Anjin noted in the investment brochure that "it has excellent accessibility to Seoul and the Gyeonggi area, adjacent to the Gyeongbu Expressway," and explained, "Especially as it serves as the integrated headquarters of the Doosan Group, with Doosan Enerbility and Doosan Bobcat Korea fully leasing it, securing long-term and stable rental income is possible."
Recently, as expectations for interest rate cuts and the schedules for fund liquidation align, numerous office properties in key business areas in Seoul and Gyeonggi Province are being released to the market. However, some industry participants express that there are insufficient capacities to absorb these properties. In the past, stable rental income allowed for reliable cash flow, attracting domestic and international investors, but the situation has changed due to increased vacancy worries.
According to the industry, the office vacancy rate in Seoul has been steadily rising in the first quarter of this year. The domestic commercial real estate service firm R Square reported that the vacancy rates were 2.83% in January, 3.06% in February, and 3.16% in March, rising for three consecutive months. In particular, the March vacancy rate is the highest level since March 2022, which was 3.23%.
An industry official stated, "The first quarter showed an overall decline in transactions in the Seoul office market," adding, "Especially with large-scale new supply planned in the Seoul area, and many corporations such as Lotte Construction and DL Group moving their headquarters to Magok District, the value as an investment asset is diminishing."