Goldman buys 262 billion won hotel, retail assets in Seoul

[HONG KONG] Goldman Sachs has acquired the four-star Mercure Ambassador hotel in Seoul, as the US bank seeks to bolster its real estate alternatives business in South Korea.

The purchase comprises 270 rooms and mixed-use retail property in the Hongdae area in northwest Seoul, according to a statement on Thursday (Jul 10). The hotel is operated by a unit of South Korea’s hospitality group Seohansa.

Goldman paid 262 billion won (S$244 million), according to sources familiar with the matter, who requested not to be named because the matter is private. A representative for the bank declined to comment on the price.

“Korea is a strategically important market for our real estate investing platform,” said Nikhil Reddy, head of real estate for Asia-Pacific at Goldman Sachs Alternatives.

The property’s location and high foot traffic present “a compelling opportunity to deliver long-term value”, he added.

The deal follows a previous Goldman investment for the Scarlet building, a six-storey retail and office property with 6,032 square metres (64,928 square feet) in gross floor area, which has been transformed into a high-occupancy retail asset.

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Goldman’s alternative investments platform is part of the bank’s asset management unit and allocates money to areas including private equity, private credit, real estate, infrastructure, hedge funds and sustainability. Goldman Sachs had about US$3.2 trillion in assets under supervision globally as at the end of March. BLOOMBERG