Koramco Asset Management has been selected as the new manager for Yeoksam Centerfield, a core office asset in Seoul's Gangnam area.
On the 16th, according to the investment banking (IB) industry, the National Pension Service and Shinsegae Property named Koramco Asset Management as the preferred bidder for the transfer of the Yeoksam Centerfield asset. Koramco was said to have been finally selected after competing with KB Asset Management, which made the shortlist.
Koramco Asset Management plans to conduct internal and external due diligence with the beneficiaries for about a month and then receive the manager status after a final resolution. With this selection, Koramco Asset Management has added an ultra-large office worth several trillion won to its management portfolio.
Yeoksam Centerfield is a prime office complex with a total floor area of 239,242㎡ on the former Renaissance Hotel site on Teheran-ro in Gangnam-gu, Seoul, combining offices, a hotel, and retail into a mixed asset. Based on blue-chip tenants, it has operated virtually without vacancy since completion and is evaluated as a core asset capable of paying more than 30 billion won in annual dividends. The market values the asset at between 2 trillion won and up to 4 trillion won.
Currently, the National Pension Service and Shinsegae Property each hold about 49.7% equity in the asset, and the existing manager, IGIS Asset Management, holds about 0.5%. The transaction will proceed by transferring IGIS Asset Management's manager status to Koramco Asset Management.
The transfer of the Centerfield asset initially stemmed from a conflict between the existing manager and the beneficiaries. When IGIS Asset Management moved to sell the asset, citing the fund's maturity and loan repayment, Shinsegae Property, the main beneficiary, objected, bringing differences between the two sides to the surface. The process moved forward after the direction shifted from a sale to a manager change instead.
Koramco Asset Management's participation in this deal is seen as driven by a strategic decision to expand collaboration with the National Pension Service. A transaction track record with the National Pension Service can serve as a key reference for winning large deals and during fundraising down the line.