Hanwha REIT was selected as the preferred bidder to acquire E-MART Tower, a core office asset near Sungnyemun in Seoul. It is expected to add a core office with strong cash flow based on a stable tenant base to its portfolio.
On the 11th, according to the investment banking (IB) industry, NH-Amundi Asset Management, which owns E-MART Tower, selected Hanwha REIT as the preferred negotiating party in the recent sale process. Hanwha REIT plans to complete the acquisition after conducting due diligence and securing financing. The sell-side advisers are GenstarMate and Cushman & Wakefield Korea.
This sale was restarted after a transaction fell through once last year. NH-Amundi Asset Management selected BNK Asset Management as the preferred bidder in Aug. last year, but the deal collapsed when financing did not come through.
In the main bid held on the 4th of this month, Hanwha REIT, Korea Investment Real Asset Management, and Shinhan Alpha REIT participated and competed. Bidders are said to have offered around 34 million won per 3.3 square meters. As a result, the total transaction size is expected to be about 350 billion won.
E-MART Tower is a prime-grade office located in Jung-gu, Seoul. It has six basement levels and 19 above-ground floors, with a total floor area of about 34,170 square meters. Since E-MART moved its headquarters from Seongsu-dong in 2022, it has been using most of the building. The lease expires in Feb. 2033, making it an asset capable of securing stable cash flow for about seven years. Based on its long-term lease structure, stable rental revenue has been secured, consistently drawing interest from REITs and institutional investors.
Its location conditions are also considered excellent. It sits on a key urban axis connecting Seoul Station and City Hall, with Seoul Station, City Hall Station, and Chungjeongno Station within walking distance. Large-scale projects such as the Seoul Station North Station Area development, the Hilton Hotel site development, and the Seoul Station complex development are underway nearby, raising expectations for future increases in local value.
NH-Amundi Asset Management acquired E-MART Tower from ARA Korea Asset Management in 2020 for 24.38 million won per 3.3 square meters, totaling 252 billion won. If this sale goes through, the industry expects it to reap a profit of around 100 billion won.