This article was published on June 24, 2025, at 3:08 p.m. on the ChosunBiz MoneyMove site.
Singapore's sovereign wealth fund, the Government of Singapore Investment Corporation (GIC), is initiating the sale of the mid-sized office building Premier Place, located in Gwanghwamun, Seoul. Following the sale of The Exchange Seoul (TES) last year, GIC appears to be systematically offloading assets, including Premier Place and the Seoul Finance Center (SFC).
On the 24th, according to investment banking (IB) industry sources, GIC has selected CBRE Korea and Deloitte Anjin as advisors for the sale of Premier Place and has begun active marketing efforts targeted at potential buyers. It has been confirmed that both domestic and foreign financial investors (FIs) and strategic investors (SIs) in the real estate sector have received teaser memos (TMs). TMs are documents meant to gauge potential buyers' interest before distributing investment memorandums (IMs).
The sellers plan to distribute investment memorandums to buyers who have submitted non-disclosure agreements and to arrange site tours. The sale process is expected to be completed within the third quarter of this year. Recently, office assets in the Central Business District (CBD), such as Crescendo Building and Centerpoint Gwanghwamun, have been trading at mid-30 million won per 3.3 square meters, suggesting that the sale price of Premier Place will be similarly established.
Premier Place is a prime office building located at the entrance of Cheonggyecheon in the CBD of Seoul. Constructed in 1992, it consists of 5 underground floors and 15 above-ground floors, with a total floor area of approximately 16,442 square meters (4,974 pyeong). It is considered an asset due to its proximity to major business districts in Seoul, such as Gyeongbokgung Palace and Gwanghwamun, and its closeness to cultural and leisure spaces like Cheonggye Plaza, which contributes to a vibrant pedestrian flow.
Premier Place maintains a 100% occupancy rate for its office and retail leasing space. The city of Seoul occupies 64.3% of the office area, while Eugene Securities, Heung-A Shipping, and Hanil Networks lease the remaining floors. The retail space comprises Cafe Terarosa, 7-Eleven, Frisbee, and various restaurants. Having secured excellent tenants, it is assessed that stable rental income can be anticipated.
Industry experts expect that value enhancement or new development using additional floor area ratio incentives will attract interest from developers since the overall site acquisition for the project has been completed, enabling stable development efforts unlike typical urban redevelopment projects.
The sellers emphasized in the TM, "As the supply of medium-sized offices in the CBD is expected to be limited in the future, the scarcity of new or remodeled medium-sized offices will become increasingly pronounced," adding, "Recent increases in tourism demand in Seoul have also shown a trend of rising average daily room rates (ADR) for hotels in the central area, indicating high scarcity for hotel development as well."
GIC made its substantial entry into the Korean market by acquiring the SFC shortly after the foreign exchange crisis in 2000. Subsequently, it purchased additional assets including TES and Premier Place, as well as the NIA Building, and initiated a large-scale development project to connect the underground spaces of these four buildings. However, with construction regulations hindering the consolidation development, GIC is currently in the process of systematically offloading its assets.