Invesco Real Estate has sold a KRW520bn (鈧�345bn) office tower in South Korea鈥檚 capital to a real estate investment trust managed by Koramco.
The $91bn (鈧�86bn) global real estate investment business of investment firm Invesco said it has sold the Majestar City Tower B in the Gangnam Business District in Seoul.
Invesco Real Estate acquired the 17-storey Tower B asset in 2017 for the firm鈥檚 dedicated core programme in Asia Pacific.
The 46,000sqm office tower, built in 20017, forms part of the wider Majestar City mixed-use development comprising office, retail and residential,
Ian Schilling, head of core funds in Asia Pacific for Invesco Real Estate, said: 鈥淢ajestar was acquired six years ago and has delivered attractive risk-adjusted returns to our investors. As active real estate managers, the selective and well-timed sale of assets to rebalance portfolios and realise embedded value is always a key element of our investment process, and our secular convictions mean we believe now is the right time to divest.鈥�
Schilling said the sale price achieved is almost double the firm鈥檚 original purchase price.
Gideon Lee, the head of Korea for Invesco Real Estate, said: 鈥淪upported by solid office fundamentals, the Gangnam Business District is one of the most diverse office hubs and home to an increasing number of businesses. Majestar was previously a fringe office location, but we identified strong growth potential in the area due to the expansion of the GBD [Gangnam Business District] office market and a significant shortage of future office supply.
鈥淥ur expectations came true as we leased an empty, newly constructed building to full occupancy and subsequently increased rents through active asset management.鈥�
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