Koramco puts Hyundai Motor Securities building on market

Koramco Asset Management Co. has put the Hyundai Motor Securities building in Seoul's Yeouido business district (YBD) on the market. The deal is expected to fetch between 300 billion and 350 billion won ($226 million to $263 million), according to people with knowledge of the matter on Thursday.

Seoul-based Koramco recently sent requests for proposal to real estate sales advisors to kick off the sale process, one year before the Oct. 2025 expiration of the fund investing in the prime office real estate.

The building has 20 aboveground floors and six floors below ground, with a total floor area of 40,440 square meters housing Hyundai Motor Co. as an anchor tenant.

Its estimated value represents a 13% to 30% premium of Koramco’s purchase price of 266.6 billion won, reflecting the transaction price of commercial buildings in the Yeouido area: 25 million to 30 million won per 3.3 square meters.

Koramco acquired the property from KB Asset Management Co. in 2020.

YEOUIDO BUSINESS DISTRICT

Koramco believes now is the right time to unload the Hyundai Motor Securities building given the dearth of properties up for sale in the YBD. Looming interest rate cuts by the Bank of Korea are expected to relieve the financial burden on its potential buyer.

Other buildings up for grabs in the YBD include the Mirae Asset Securities building worth 31 million won per 3.3 square meters. Woori Asset Management was picked as its preferred buyer.

Koramco Asset and its affiliate Koramco REITs Management and Trust Co. are leading the domestic office investment market.

It is tipped to buy the NH Nonghyup Capital Building in the YBD for about 23 million won per 3.3 square meters.

GANGNAM, CENTRAL BUSINESS DISTRICTS

Koramco is also seeking to buy the KOREIT Tower, spanning 34,984 square meters, in the Gangnam business district (GBD), from Korea Real Estate Investment & Trust (KOREIT) and The Exchange Seoul Office building in Seoul's central business district (CBD) from Singapore’s GIC.

Earlier this year, it purchased the Arc Place, a premium office tower in the CBD, from Blackstone for 791.7 billion won.

Its divestments this year include the K-Square City in the CBD, sold to Pacific Asset Management for about 400 billion won, and the Golden Tower in the Gangnam business district (GBD) unloaded to Singapore's real estate investor CapitalLand Investment for 440.8 billion won.

It also sold the Seocho Tower in the GBD, housing GS Engineering & Construction Co. to Shinhan Alpha REIT Co., for 202.3 billion won last month.

Koramco REITS Management is poised to sell The Asset in the GBD, used as Samsung Fire & Marine Insurance Co.’s headquarters, to Samsung Group for more than 1 trillion won, in what would be the largest-ever office transaction in Korea this year.

The GBD is one of Seoul’s three major business districts along with the CBD and YBD.

In the CBD, the Seoul Finance Center, Crescendo Building, KDB Life Tower and Crystal Square have been on the market.

Write to Byung-Hwa Ryu at hwahwa@hankyung.com
 

Yeonhee Kim edited this article