This article was displayed on the ChosunBiz MoneyMove MM site at 3:46 p.m. on Feb. 26, 2026.
Korea Investment Real Asset Management is finalizing the acquisition of Seoul Square for about 1.3 trillion won. Korea Investment Real Asset Management was selected as the preferred bidder in September last year, but it faced difficulties raising funds and extended the deal-closing (final payment) deadline. Institutional investors (LPs) and even within the Korea Investment & Securities Co. group, there were skeptical reactions citing price concerns. Korea Investment Real Asset Management is said to have barely completed fundraising by presenting investors with multiple exit options.
According to the investment banking (IB) industry on the 26th, Korea Investment Real Asset Management plans to pay the remaining balance for the Seoul Square acquisition that day. It has been about five months since it was selected as the preferred bidder.
Seoul Square is a large office building with two basement levels and 23 aboveground floors and a total floor area of 132,800 square meters. It is a key asset near Seoul Station and was once the setting for the drama "Misaeng," earning it the nickname "Jang Geurae Building." In March 2019, ARA Korea Asset Management purchased it with NH Investment & Securities at 24.6 million won per pyeong, totaling 988.2 billion won.
ARA Korea Asset Management began the sale of Seoul Square last year and selected Korea Investment Real Asset Management as the preferred bidder in September. The acquisition price was about 32 million won per 3.3 square meters (pyeong), totaling around 1.3 trillion won. JLL Korea and Savills Korea jointly served as sale advisors.
However, the deal closing was not smooth. With a high-interest-rate environment and uncertainty in the office market, there were many skeptical views about the 1.3 trillion won price. In particular, because Seoul Square was completed in 1977, concerns about additional capital expenditures (CAPEX) due to aging and large-scale supply worries from the nearby northern Seoul Station development dampened investment sentiment.
In fact, Korea Investment Real Asset Management experienced difficulties during fundraising and extended the originally scheduled deal-closing deadline. The original plan was to raise 800 billion won in bank loans and recruit 500 billion won in preferred and common equity investors to acquire Seoul Square. However, as investor recruitment became difficult, it reduced the equity portion and increased the loan amount to complete financing. The equity is believed to have been fully underwritten by domestic securities firms and then sold down.
Instead of the hotel conversion that advisers had presented to bidders as one option, Korea Investment Real Asset Management decided to pursue filling vacancies. To resolve vacancies caused by departures such as 11Street, it is expected to pursue aggressive marketing including rent reductions and make every effort to secure tenants by encouraging Korea Investment & Securities Co. group affiliates to move in.