Golden Tower is set to undergo an asset enhancement initiative (AEI) comprising improvements to areas such as the lobby, facade as well as mechanical, electrical and plumbing components to improve the asset’s energy efficiency. Post-AEI, the property is expected to achieve a Leadership in Energy and Environmental Design (LEED) Platinum certification. The AEI is slated to start at the end of 2024 and be completed by 3Q 2025.
CapitaLand Investment Limited (CLI) has closed a new value-add office blind pool fund in South Korea with total equity commitment of KRW200 billion1 ($194.4 million2). The private fund is a strategic partnership with KB Bank, an affiliate of the country’s largest financial group, KB Financial Group. CLI holds a sponsor stake in the fund in alignment with the interests of its capital partner. The new fund increases CLI’s geographical exposure to South Korea, a key focus market. It also increases its funds under management (FUM) in the market by 16% to $3.3 billion.
The fund has acquired an operating freehold commercial property, Golden Tower, from an unrelated third party for KRW440.8 billion ($428.5 million). CLI will also receive recurring fee income as the asset manager of Golden Tower. The 20-storey property is located in the heart of Seoul’s Gangnam Business District (GBD). Golden Tower is within walking distance to three subway stations - Seolleung, Samseong, and Samseong Central stations - and offers tenants premium views of Seonjeongneung Park, a popular cultural landmark. In addition to offices, the property also has ancillary retail as well as food and beverage options.
