National Pension Service (NPS) is moving to replace IGIS Asset Management with another general partner (GP) for "Yeoksam Centerfield," following "Starfield Goyang."
According to the investment banking (IB) industry and the appraisal industry on the 15th, National Pension Service (NPS) held an internal meeting that morning and discussed an agenda detailing plans to replace the manager of Yeoksam Centerfield. National Pension Service (NPS) decided to conduct an appraisal of the Yeoksam Centerfield asset along with Starfield Goyang and reportedly notified IGIS Asset Management.
The beneficiary of Yeoksam Centerfield is a fund established by IGIS Asset Management, and the fund's equity structure shows National Pension Service (NPS) holds about 50%, while Shinsegae Property holds the remaining roughly 49.7%.
The IB industry analyzed that National Pension Service (NPS) is taking steps to unwind its relationship with the current management of IGIS Asset Management. The view in the industry is that relations soured after some fund information containing National Pension Service (NPS)'s core asset was provided without prior approval during the sell-side due diligence process to main bidders Hanwha Life, Heungkuk Life, and Hillhouse Capital.
An IB industry official said, "Yeoksam Centerfield is an asset that IGIS Asset Management counts as core to the extent that it chose long-term holding rather than a sale at the fund's maturity in Oct. this year," adding, "National Pension Service (NPS), the largest shareholder of the fund that holds this asset, commissioning an asset appraisal is tantamount to cutting ties with IGIS Asset Management."
The official said, "Signature Tower and Starfield Goyang had been reviewed for asset sale or transfer of management to another manager even before the current IGIS Asset Management sale deal, but with Yeoksam Centerfield, National Pension Service (NPS) is beginning in earnest to distance itself from IGIS Asset Management after pushing the sale deal."
Yeoksam Centerfield was built on the former Renaissance Hotel site in Gangnam, Seoul, and has established itself as a landmark office in the Gangnam area. It has a total floor area of about 239,242㎡, consists of two buildings with seven underground floors to 36 above ground.
IGIS Asset Management, partnering with National Pension Service (NPS) in 2018, invested about 2.1 trillion won to develop Yeoksam Centerfield and has generated high revenue through the leasing business.
Representatives of both National Pension Service (NPS) and IGIS Asset Management said they "cannot confirm the matter that National Pension Service (NPS) decided to commission an appraisal for Yeoksam Centerfield."