Korea Investment Real Asset Management secured Seoul Square for 1.3 trillion won ($932 million), beating out Capstone Asset Management for control of the troubled landmark office tower, investment banking sources said Wednesday.
The relatively new asset management firm, established in July 2022, prevailed in the two-way auction despite the building’s significant operational challenges. Seoul Square faces a relatively high vacancy rate of about 19% after Korea’s e-commerce platform 11Street vacated five floors last September.
The 23-story tower spans 133,000 square meters and features one of the world’s largest LED media facades. Built in 1970 as headquarters for the defunct Daewoo Group, the property sits across from Seoul Station with direct transit connections.
The initial auction attracted Korea Investment and Capstone only due to the building’s expensive price, which was valued at more than 1.4 trillion won by the sellers. The co-owners initiated the sale as their real estate fund nears expiration next February.
JLL Korea and Savills Korea advised on the transaction. The sellers hope to complete the deal with Korea Investment before the end of this year after hammering out differences.
The acquisition comes as Korea’s commercial real estate market shows signs of recovery, though investors remain cautious about office properties facing post-pandemic occupancy pressures.
