Mirae Asset Global Investments said on the 13th that it sold Pangyo Techwin Tower (Alphadom City Block 6-2) to a KakaoBank·Korea Investment Real Asset Management consortium for about 2 trillion won. At 33.2 million won per pyeong (3.3㎡) based on gross floor area, it is the highest price among Pangyo office facility transaction prices on record.
With this transaction, Mirae Asset Global Investments realized about 1.12 trillion won in profits for investors by combining operating distributions and capital gains from the sale. That is about 2.6 times the fund's 430 billion won in committed capital, and the internal rate of return (IRR) was estimated at about 23%.
Mirae Asset Global Investments led the entire real estate development process for this project, including architectural planning, design and approvals, and construction.
In 2017, Mirae Asset Global Investments, through a real estate fund that raised 860 billion won in equity, purchased in one lot 7,300 pyeong of land in Alphadom City Blocks 6-1 and 6-2. It embarked on the development of a large-scale mixed-use office complex with a total gross floor area of about 110,000 pyeong. At the time, it was the largest investment in Korea for a single project.
Based on its real estate development experience, Mirae Asset Global Investments also achieved cost savings of about 15% to 20% in construction compared with similar projects.
Mirae Asset Global Investments is also pushing ahead with follow-up projects. On a site adjacent to Pangyo Tech One Tower, it is developing a new 110,000-pyeong mixed-use office facility with a target completion at the end of 2027, and in Seongsu-dong, Seoul, an office with an innovative design of 70,000 pyeong that will serve as KRAFTON's headquarters is underway with a target completion in early 2028.
Vice Chairman Choi Chang-hun of Mirae Asset Global Investments said, "Under an investment philosophy of building a spatial platform for the fourth industrial revolution where creative talent and innovative corporations coexist, we led the Pangyo project and were able to construct a landmark that made the most of the location's advantages," and added, "Going forward, Mirae Asset Global Investments will continue striving to create a sustainable real estate development model that enhances the value of cities and grows together with investors."