This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:14 p.m. on Jun. 10, 2026.
JR Asset Management was selected as the preferred bidder to acquire the Times Square office building in Yeongdeungpo, Seoul. Even as market concerns grew recently with JR Global REIT entering rehabilitation proceedings, the seller, Koramco REITs Management and Trust, is understood to have granted JR Asset Management the right to negotiate first, highly rating its funding structure and the likelihood of closing the transaction.
According to the investment banking (IB) industry on the 10th, Koramco REITs Management and Trust recently selected JR Asset Management as the preferred bidder for the sale of Times Square Office Towers A and B. The two sides plan to sign a memorandum of understanding (MOU) this month, then begin due diligence and talks on detailed contract terms. The target for closing the transaction is the third quarter of this year. The sell-side advisors are Jones Lang LaSalle Korea (JLL) and ACREtree.
The asset for sale is the Times Square office building owned by KOCREF No. 51 Real Estate Investment Company. It consists of the A and B towers directly connected to Yeongdeungpo Station, with a total floor area of about 39,000㎡ (about 11,800 pyeong). Blue-chip tenants such as Hyosung ITX, Shinhan Card, and KT CS have moved in, and the occupancy rate reaches 99.9%. The weighted average lease expiry (WALE) is also over five years, and it is regarded as an asset that has secured stable cash flow.
Given the recent JR Global REIT situation, some say this preferred bidder selection is somewhat unexpected amid heightened concerns about JR Asset Management's operational capabilities and funding ability. Previously, JR Global REIT filed for rehabilitation proceedings after a cash trap was triggered at Belgium's Finance Tower and liquidity worsened.
However, Koramco REITs Management and Trust is seen as having judged that JR Asset Management is highly reliable in terms of transaction certainty despite the REIT incident. With not a few cases in the commercial real estate market recently where transactions fell through after the selection of a preferred bidder due to funding setbacks or failure to recruit investors, the seller explained it placed importance on a structure that could actually complete the transaction to the end.
In fact, to enhance deal certainty, the sell-side is said to have received additional proposals from around four bidders after the initial auction. It was reportedly a process of re-examining the funding plan, investor mix, and equity commitment plan.
In this process, JR Asset Management is said to have submitted a letter of commitment (LOC) for its own investment and proposed conditions such as non-refundable performance deposits. It is also reported to have proposed a structure that attracts common equity investors based on end-user demand by using a real estate fund (REF), with a securities firm arranging preferred equity investment and senior lending.
The seller is said to have judged that the proposed funding structure is highly feasible given the high occupancy rate and stable cash flow of the Times Square office building. The transaction price is being discussed at the mid-20 million won per pyeong range based on total floor area. The total transaction size is estimated at around 300 billion won.
An industry official said, "Koramco proceeded with an additional competitive process to shore up deal certainty after receiving initial bids from multiple buyers," adding, "In selecting the preferred bidder this time, not only price but also the funding structure and the actual likelihood of closing the transaction appear to have been important criteria."