KKR, IGIS Asset Management and Korean real estate developer SK D&D have paid an undisclosed sum to buy the Namsan Square office tower in Seoul.
The 75,00sqm building is currently held in a real estate investment trust operated by KOREIT.
ΒιΆΉΣ³» Real Assets understands that the owner is Koreaβs largest pension fund, NPS, and the purchase price was around KRW500b (β¬370m).
Sources said KKR had an 80% of common equity interest with the remaining 20% split between IGIS balance sheet and other Korean partners.
It is also understood IGIS, South Koreaβs largest asset manager, is arranging the preferred equity capital and third party financing package which would include the cost of capital expenditure on the building, totalling KRW570bn.
David Cheong, a director on KKRβs Asia Real Estate team, said: βSouth Korea holds terrific potential for real estate investment, and the market is a core part of KKRβs regional real estate strategy.β
Junho Pok, head of real estate development at IGIS, said Namsan Square was located at the βgatewayβ to Seoul central busioness district, and would be upgraded and renovated.
Namsan Square is KKRβs fourth real estate investment in Korea.
Previous investments include The-K Twin Towers, a prime office complex located in Seoulβs Gwanghwamun district; Renaissance Parc, a mixed-use real estate development project in Seoulβs Gangnam business district; and the BLK Pyeongtaek Logistics Center development in Pyeongtaek.
KKR had committed more than US$1.4bn (β¬1.3bn) in equity to its pan-regional real estate strategy as of 31 December 2019.
