Keppel funds buy Seoul tower; S Korean portfolio now 2.6 trillion won
KEPPEL Corporation on Thursday (Jul 20) said its private funds acquired the Bank of Korea’s Sogong Annex Facility, located in Seoul’s Central Business District (CBD). The move brings the conglomerate’s South Korean portfolio to 2.6 trillion won (S$2.6 billion).
The acquisition was made by Keppel Asia Macro Trends Fund IV and a co-investment programme committed by a Korean financial institution, Keppel said.
Each fund will hold a 50 per cent effective interest in the property – a 13-storey office tower with adjacent parking facilities spanning some 15,750 square metres of gross floor area.
The facility was originally the headquarters of Korea Commercial Bank and is located at the intersection of Myeongdong and Namdaemun in Seoul’s CBD. It is also in the vicinity of the City Hall and Myeongdong subway stations.
When asked about the amount paid for the building, a Keppel representative said the consideration could not be disclosed due to confidentiality agreements.
Keppel plans to roll out asset enhancement initiatives on the property. This includes upgrading the office building’s facade and interior spaces, as well as undertaking active lease management to optimise occupancy and achieve higher rents.
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“Similar to how we are refurbishing Samhwan Building, acquired last year jointly with Keppel’s private funds, we will leverage digital technologies to retrofit and future-proof the Sogong Annex Facility,” said Louis Lim, chief executive of Keppel’s real estate division.
Robert Sung, Keppel’s chief representative in Korea, said the group sees tremendous opportunities in the South Korean market. It expects to invest about S$3 billion over the next three years across real estate as well as infrastructure assets.
Sung noted that Keppel has managed about S$5.3 billion of assets in the country since 2004. It also manages Samhwan Building, a 15-storey office building, as well as Eco Management Korea Holdings, a waste management company.
Keppel does not expect the latest transaction to have any material impact on its earnings per share and net tangible assets per share for the current financial year.
The counter closed up 0.2 per cent, or S$0.01, to S$6.86 on Wednesday.
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