IGIS puts NPS-backed building in Seoul on sale for $294 mn

IGIS Asset Management Co., one of Asia's largest real estate investment firms, is seeking to sell a building backed by South Korea’s National Pension Fund (NPS) in Seoul for up to 400 billion won ($293.6 million).

IGIS on Thursday sent requests for proposals (RFPs) to major property sales advisors to unload Noon Square, which the Seoul-based real estate asset manager owns through a fund, in Myeong-dong, foreign tourists' favorite spot in the country’s capital, according to investment banking industry sources.

The leading South Korean asset manager is poised to accelerate the sales process once it selects an advisor for the deal, which is estimated at 350 billion won-400 billion won.

It plans to sell the shopping mall building purchased at 250 billion won in 2012 as the fund is scheduled to mature in March 2025. The beneficiaries of the fund include NPS and the Police Mutual Aid Association.

STABLE PROFITS FROM MAJOR TENANTS

“The building consists of tenants from various sectors such as F&B, fashion and shared office, generating stable profits,” said a real estate investment banking industry source, referring to the food and beverage business. “It is also located in an area with a lot of foot traffic.”

The eight-story building is leased by fashion brands such as Zara and Nike, as well as cinema chain CJ CGV, Singapore-based co-working space operator JustCo and others.

Those tenants occupy more than 70% of its total floor area of 23,834 square meters (256,547 square feet), while their remaining lease periods of about 10 years are likely to provide stable profits.

IGIS founded in 2010 has expanded its presence through the acquisitions of prime offices, retail, logistics centers and houses not only in Asia but also in North America and Europe.

Write to Byeong-Hwa Ryu at hwahwa@hankyung.com
 
Jongwoo Cheon edited this article.