Brookfield seeks 2.5 trillion won loan to refinance Seoul IFC deal
[NEW YORK] Brookfield Asset Management is seeking a 2.5 trillion won (S$2.2 billion) loan backed by Seoul’s International Finance Center, people familiar with the matter said, underscoring the refinancing squeeze facing investors stuck with unsold commercial real estate.
Proceeds from the new facility, which could carry a five-year tenor, will refinance an existing loan of around 2.55 trillion won that supported Brookfield’s purchase of the complex, said the people, who asked not to be identified discussing private matters. The asset manager is currently in talks with banks and details of the deal could still change, the people added.
A representative for Brookfield declined to comment.
The refinancing highlights the strains facing investors in parts of Korea’s commercial real estate market. Rising financing costs and leverage burdens have prompted efforts to offload assets worth trillions of won as these purchases were made three to five years ago at low rates, according to a September report from Colliers. Yet many sale processes have stalled amid valuation disputes and regulatory hurdles.
Brookfield’s effort is part of a yearslong plan to sell IFC Seoul, which it acquired in 2016. Mirae Asset Global Investments was named preferred buyer in 2021, but the deal collapsed after failing to secure government approval, Yonhap News reported.
Brookfield acquired IFC Seoul through its real estate arm, Brookfield Property Partners. The complex includes three office towers and a 400,000-square-foot shopping mall, according to a press release. In 2024, the firm sold the five-star Conrad hotel, once part of the property’s portfolio, for about US$300 million to a Korean real estate fund.
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Brookfield had over US$1 trillion in assets under management as of Sept 30, according to its website. BLOOMBERG
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