GIC, Canadian pension fund buy prime Seoul office building for 418b won

GIC and the Canada Pension Plan Investment Board (CPPIB) on Wednesday said they have entered into a joint venture partnership to buy a Grade A office building in Seoul, the Kumho Asiana Main Tower, from Kumho Asiana Group, the parent of Asiana Airlines, for 418 billion Korean won (S$518.5 million).

Following this transaction, CPPIB and GIC will each own a 50-per-cent stake in the property, which is located in the centre of Gwanghwamun, a core office, government and cultural precinct in Seoul’s central business district.

The property was sourced and will be managed by DWS, formerly Deutsche Asset Management. 

Lee Kok Sun, chief investment officer, GIC Real Estate, said: “GIC has been investing in South Korea since the late 1990s. This investment reflects our confidence in South Korea’s continued growth, and commitment to identifying attractive opportunities in this market.

"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.”