SINGAPORE: Singapore's sovereign wealth fund GIC has entered into a 50-50 joint venture with Canada Pension Plan Investment Board (CPPIB) to acquire a prime office building in Seoul for 418 billion won (US$380 million or S$510 million).
Kumho Asiana Main Tower, a Grade A office building, is located in the centre of Gwanghwamun – a core office, government and cultural precinct in Seoul’s Central Business District. It was bought over from Kumho Asiana Group, the parent of Asiana Airlines.
AdvertisementFollowing the transaction, CPPIB and GIC will each own a 50 per cent stake in the landmark property, said the joint press release on Wednesday (May 9).
The property was sourced and will be managed by DWS, formerly known as Deutsche Asset Management.
Mr Lee Kok Sun, GIC Real Estate’s chief investment officer, said the sovereign wealth fund has been investing in South Korea since the late 1990s.
The latest investment reflected GIC's "confidence in South Korea’s continued growth and commitment to identifying attractive opportunities in this market", he said in the press release.
AdvertisementAdvertisement“We believe this high-quality, well-located property will generate resilient returns over the long term, and look forward to working with CPPIB and DWS to enhance the value of this asset," added Mr Lee.
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