GIC, S. Korean retail giant team up to build mall

GIC and Shinsegae have joined hands to develop a prime retail mall in the Incheon Free Economic Zone.
GIC and Shinsegae have joined hands to develop a prime retail mall in the Incheon Free Economic Zone. PHOTO: BLOOMBERG

Sovereign wealth fund GIC and South Korean retail giant Shinsegae have joined hands to develop a prime retail mall in the Incheon Free Economic Zone.

Affiliates of the two firms have entered into a US$197 million (S$267 million) sale and purchase agreement for a nearly 60,000 sq m site, centrally located in the international business district of Songdo, GIC said in a statement yesterday.

The high-tech Songdo district, dubbed the world's smartest, has been built from scratch on reclaimed land near the Incheon International Airport and has a population of nearly 70,000 residents, mostly families and young couples.

The new lifestyle mall to be developed on the acquired land will be a one-stop facility for entertainment and leisure activities with close proximity to a subway station, a bus terminal and expressways.

The mall is scheduled to be completed by 2020, the statement added.

This is the second time GIC is teaming up with Shinsegae in the retail sector.

The two firms earlier partnered to develop a prime retail mall in Dongdaegu Station which is scheduled to be completed by the second half of this year.

GIC has more than US$100 billion in assets under management in the property, private equity, fixed income and equity sectors in over 40 countries, including South Korea.

In May last year, GIC teamed up with Canada Pension Plan Investment Board to buy the D-Cube retail mall in Seoul for US$263 million.

The mall was rebranded as Hyundai Department Store and is operated by Hyundai.

GIC also holds prominent assets with good long-term value, such as the Seoul Finance Centre in South Korea. It has been investing in emerging markets for more than 20 years.

A version of this article appeared in the print edition of The Straits Times on April 19, 2016, with the headline 'GIC, S. Korean retail giant team up to build mall'. Print Edition | Subscribe