After multiple failed sale attempts, Eulji Finance Center, which barely broke ground this month, will be jointly acquired by JR Asset Management and the developer IB Networks.
According to the investment banking (IB) industry on the 24th, JR Asset Management signed a memorandum of understanding (MOU) with IB Networks for business cooperation on the Eulji Finance Center project. Going forward, JR Asset Management is expected to acquire Eulji Finance Center through a real estate fund, while IB Networks will invest in common shares.
Eulji Finance Center, located in the central business district (CBD), a key business area of Seoul, is a prime-grade office building being created through the Euljiro 3-ga Districts 1 and 2 urban renewal-type redevelopment project. It consists of one building with eight basement levels and 24 floors above ground, with a total floor area of 67,492㎡. GS Engineering and Construction and Xi S&D are in charge of construction. It is a one-minute walk from Euljiro 3-ga Station on Seoul Subway Lines 2 and 3.
Initially, IB Networks sought a forward sale of Eulji Finance Center to enhance development stability. As a prime-grade office in the CBD with limited new supply, numerous strategic investors (SI) and financial investors (FI) showed interest. After talks with Mirae Asset Global Investments in early 2023 fell through, deals also failed to close with IGIS Asset Management and Samsung SRA Asset Management.
Ultimately, after consecutive sale failures, IB Networks turned to project financing (PF). In mid-year, GS Engineering and Construction enhanced credit by taking on completion guarantees, speeding up fundraising, and Meritz Financial Group backed the main PF of 820 billion won following the bridge loan. After receiving approval for changes to the project implementation plan from Jung District Office on the 10th, construction began. Completion is in December 2028.
JR Asset Management is a real estate-focused asset management company established in 2008. As of the end of last year, it operates nine REITs. Its cumulative assets under management (AUM) stand at 8.9252 trillion won.