Koramco REITs Management and Trust will launch an extra-large office development near Gangnam Station in Seoul with a total project cost of 1 trillion won. With supply of newly built prime offices limited in Seoul's key business districts, the plan is to deliver a large office in a core location of the Gangnam Business District (GBD).
Koramco said on the 12th that it will push the "Gangnam Station L Project" across 1323 Seocho-dong, Seocho-gu, Seoul. The site, adjacent to Gangnam Station, is a special planning Zone 2 under the district unit plan along Seocho-ro, and is set to house a mixed-use office and retail complex with a total floor area of about 20,000 pyeong. The building will be built with six basement levels and 23 above-ground floors, with completion targeted for 2031.
The L Project will be developed as a prime office targeting large tenants. The standard floor net area is planned at about 500 pyeong, with a floor-to-floor height of 4.5 meters and a floor-to-ceiling height of 3 meters. A large lobby, various amenities, and parking for about 390 vehicles will also be provided.
The Gangnam Station area is considered the center of the GBD, where the Teheran-ro business corridor meets the Gangnam-daero commercial district. In particular, the Seocho-ro area near the site is designated for district unit planning and the undergrounding of the Gyeongbu arterial road, positioning it to benefit from the future expansion of the business area.
Koramco plans to pursue the project using Seoul's preliminary negotiation system. The site is designated for establishing detailed development plans through preliminary negotiations, and the approval process will proceed to include an upgrade of the zoning district and a public contribution plan.
The project will proceed through a co-investment and collaboration structure with SK D&D. SK D&D has experience supplying new offices totaling about 220,000 pyeong across Seoul's major business districts.
Koramco has recently been expanding its development investment scope to offices, data centers, and logistics centers. Through the K Square Gangnam series, Yeouido TP Tower, and K Square Data Center Gasan, it has accumulated development and operation experience, and with this project it aims to showcase its capabilities in extra-large developments at a core GBD location.
Within the industry, some say that, given the limited supply of large new offices in the GBD, the L Project could stand out for its scarcity value by 2031 when it is completed. According to Koramco, there are about 20 prime offices in the GBD with a total floor area of at least 15,000 pyeong, and only six of those are assets tradable through funds or REITs. There are also reportedly few large offices that can offer a standard floor net area of 450 pyeong or more.
A Koramco official said, "Even though the area near Gangnam Station is a core business location with high preference among corporations, supply of large, newly built prime offices is limited," adding, "Through the L Project, we plan to deliver a landmark-grade business facility with strong location, scale, and spatial competitiveness."