GIC, Canadian fund buying prime Seoul tower for $518m

Singapore sovereign fund GIC and the Canada Pension Plan Investment Board (CPPIB) yesterday said they have entered into a joint venture partnership to buy a Grade A office building in Seoul, the Kumho Asiana Main Tower, from Kumho Asiana Group, the parent of Asiana Airlines, for 418 billion Korean won (S$518 million).

Following this transaction, CPPIB and GIC will each own a 50 per cent stake in the property, which is located in the centre of Gwanghwamun, a core office, government and cultural precinct in Seoul's central business district.

The property was sourced and will be managed by DWS, formerly Deutsche Asset Management.

"GIC has been investing in South Korea since the late 1990s. This investment reflects our confidence in South Korea's continued growth, and commitment to identifying attractive opportunities in this market," said GIC Real Estate chief investment officer Lee Kok Sun.

CONFIDENCE IN CONTINUED GROWTH

GIC has been investing in South Korea since the late 1990s. This investment reflects our confidence in South Korea's continued growth, and commitment to identifying attractive opportunities in this market.

GIC REAL ESTATE CHIEF INVESTMENT OFFICER LEE KOK SUN

"We believe this high-quality, well-located property will generate resilient returns over the long term, and look forward to working with CPPIB and DWS to enhance the value of this asset."

A version of this article appeared in the print edition of The Straits Times on May 10, 2018, with the headline 'GIC, Canadian fund buying prime Seoul tower for $518m'. Print Edition | Subscribe