Actor Lee Jong-seok has been confirmed to have bought a building in Cheongdam-dong, Gangnam-gu, Seoul, for 16.2 billion won. Considering that a senior mortgage of 7.2 billion won was set for the building purchase, it appears more than 10 billion won in cash was invested.
On Apr. 8, according to the real estate industry and the Supreme Court's online registry, Lee Jong-seok completed the transfer of ownership registration on Feb. 27 for a building at 123-16 Cheongdam-dong, Gangnam-gu, Seoul. The sale contract was made on Dec. 29 last year, and the purchase price is 16.2 billion won.
The building is a Class 1 neighborhood living facility of reinforced concrete construction, on land measuring 234㎡, with one basement level and five above-ground floors. It is a near-new building that received use approval in January last year, and the gross floor area consists of 144.95㎡ on the first floor, 123.91㎡ on the second, 123.28㎡ on the third, 71.99㎡ on the fourth, and 72.31㎡ on the fifth.
A check of the certified copy of the register for the land and building found that a senior mortgage with a maximum secured claim of 7.2 billion won was set along with the transfer of ownership. Given that commercial banks typically set the maximum secured claim at 120% of the loan amount, the actual loan is estimated at about 6 billion won. Lee Jong-seok effectively raised more than 10 billion won in cash out of the 16.2 billion won purchase price.
The building Lee Jong-seok bought had been owned by Mbasic LLC, but the owner changed after one year.
Real estate experts saw the purchase as a typical income-generating real estate investment aimed at Cheongdam-dong's unique scarcity and potential land price appreciation.
A real estate asset management expert, identified only as A, said, "Cheongdam-dong has steady leasing demand and very strong defense against land price declines," and added, "In particular, by purchasing a near-new building, the strategy appears to be to capture both reduced management expense and high rental revenue."
In the real estate industry, the site of the building Lee Jong-seok bought is evaluated as being on the "Heritage Line," where Korea's most expensive high-end residential complexes, such as PH129 and Eterno Cheongdam, are clustered, making it a location expected to see long-term land price gains.
An Hyeong-jun, Head of Team of One Building Real Estate Brokerage's sales division, said, "The site that actor Lee Jong-seok purchased this time is estimated, considering construction costs, at about 190 million won per 3.3㎡ on a land basis, and the construction cost is estimated at around 2.3 billion won." An added, "This building is expected to gain competitiveness in the leasing market as demand will increase with related companies moving in once the remodeling of Handsome's second headquarters on the former Saebyeokjip site nearby is completed."
In the past, Lee Jong-seok also bought buildings in key areas of Seoul such as Hannam-dong and Sinsa-dong, realizing capital gains or enhancing real estate value through remodeling.