SINGAPORE (April 29): Keppel Capital Holdings, the asset management arm of Keppel Corporation Limited, says its Alpha Asia Macro Trends Fund III (AAMTF III) is acquiring 100% stakes in three Grade ‘A’ freehold commercial buildings in Seoul, Korea, for a total of KRW 430 billion ($510 million).
The portfolio of three commercial buildings comprises Yeouido Finance Tower at the Yeouido business district, Nonhyun Building at the Gangnam business district, and Naeja Building at the Gwanghwamun central business district.
In a press release on Monday, Keppel says it expects Yeouido Finance Tower, a 21-storey office and retail mixed-use development with approximately 42,300 sq m in gross floor area (GFA), to benefit from the upcoming rail line GTX B.
Slated for completion in 2025, the new rail line will improve the property’s accessibility by connecting Yeouido to the Songdo international business district and major stations in the CBD, including Seoul station and Yongsan station, adds the group.
Meanwhile, Nonhyun Building is a 20-storey office and retail mixed-use development with a GFA of 18.600 sq m.
Keppel highlights the property’s accessibility – being adjacent to Nonhyun station and a five-minute drive away from Gangnam station and the Gangnam Retail District – as well as a tenant portfolio including notable individuals such as Hanwha Life Insurance and Fissler Korea.
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Lastly, Naeja Building is a 15-storey office development with 13,000 sq m in FGA. It is currently fully leased to local businesses, its anchor tenant being law firm Kim & Chang.
The group says this property is also highly accessible as it is within a three- and 10- minute walk away from Gyeongbukgung Place station and Gwanghwamun station, respectively.
“The office sector is expected to see limited supply over the next few years while leasing demand is projected to remain steady. We are confident that these favourable fundamentals, coupled with our experienced team, active asset management on the ground and robust value creation strategies, will enable us to generate good returns for AAMTF III’s investors,” says Robert Sung, CEO of Keppel Investment Management.
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“We will continue to build on this traction and actively pursue quality opportunities to strengthen our product offerings in South Korea,” he adds.
Shares in Keppel Corp closed 1 cent lower at $6.79 on Monday.
