Korea Investment Real Asset has been selected as the preferred bidder for the sale of Seoul Square near Seoul Station, regarded as the "big fish" of the office building market in the second half of this year.
According to the investment banking (IB) industry on the 24th, ARA Korea Asset Management chose Korea Investment Real Asset Management as the preferred bidder for the sale of Seoul Square in Jung District, Seoul. The sale price is said to be around 1.3 trillion won.
Capstone Asset Management and Korea Investment Real Asset participated in the bidding held at the end of 8th, but the selection of the preferred bidder was delayed as the seller, ARA Korea Asset Management, asked for higher prices and took another round of proposals.
The bidders resubmitted with new prices, and based on that, the seller and the lead manager coordinated and selected Korea Investment Real Asset Management, which offered a higher price, as the preferred bidder. Previously, ARA Asset Management acquired Seoul Square with NH Investment & Securities in March 2019 for 988.2804 billion won.
Completed in 1977, Seoul Square is a large office asset with two underground levels and 23 above-ground floors, and a total floor area of 132,806 square meters. It was formerly used as the headquarters of the Daewoo Group, and after the group's dissolution, its name was changed to Seoul Square. After a major remodeling in 2010, it attracted numerous corporations and has been regarded as a representative trophy asset within the central business district (CBD).
Located in front of Seoul Station, Seoul Square is rated highly for transportation convenience, as internal passages connect to Subway Lines 1 and 4, the Gyeongui Line, the Airport Railroad, as well as KTX and the GTX-A line. As of the end of 8th, it maintained an occupancy rate of 81.4%. Currently, domestic conglomerates such as SK Shipping, Kyobo Life Insurance, and KG Steel, as well as overseas corporations including WeWork, Mercedes-Benz, and ExxonMobil, are tenants.