As IGIS Asset Management moves to sell "Yeoksam Centerfield," a core office asset in southern Seoul's Gangnam, the National Pension Service, a key investor, is pushing to replace the fund's general partner (GP).
According to the investment banking (IB) industry on the 20th, the National Pension Service's fund management headquarters held an investment committee meeting that day and approved an agenda to replace the GP of the fund holding Yeoksam Centerfield. Even though the National Pension Service and Shinsegae Property, the key co-revenue holders, oppose the sale, IGIS Asset Management has maintained its plan to proceed, leading to the decision to replace the manager.
Shinsegae Property and the National Pension Service each hold 49.7% equity in Yeoksam Centerfield. IGIS Asset Management holds about 0.5% equity. The National Pension Service and Shinsegae Property plan to convene a shareholders meeting to approve the GP replacement agenda, then select a new manager and transfer the asset.
The conflict between the two sides intensified when IGIS Asset Management distributed a request for proposal (RFP) to overseas advisory firms for the sale of Yeoksam Centerfield. Shinsegae Property pushed back, calling it a unilateral decision made without prior consultation, and the National Pension Service also expressed opposition to the sale from the same position as Shinsegae Property.
However, IGIS Asset Management did not halt the sale process, saying that with the fund's maturity approaching, it must prioritize investors' interests. It maintains that selling the asset and returning capital aligns with the duty of care, and under the Financial Investment Services and Capital Markets Act, a manager must operate assets independently, regardless of investors' individual instructions.
With both sides at odds, the National Pension Service decided to convene a shareholders meeting to replace the GP. Under the Commercial Act, replacing a manager requires amending the investment company's articles of incorporation, which in turn requires a special resolution at a shareholders meeting.
It was also confirmed that the committee decided that day to proceed with the sale of Starfield Goyang. The National Pension Service invested in the asset through IGIS Asset Management. IGIS Asset Management received about 380 billion won (about 49% equity) from the National Pension Service and promoted the Starfield Goyang development project with Shinsegae Property (about 51%).