Brookfield Asset Management has sold the Conrad Hotel in South Korea’s capital to ARA Korea REF for US$415m (€385m).
The Conrad is a five-star luxury hotel anchoring IFC Seoul, a prime landmark mixed-use complex located in the Yeouido, the financial hub of Seoul.
Brookfield acquired IFC Seoul in 2016 and since then has successfully, completed a repositioning of the entire complex resulting in full occupancy with the office towers and retail shopping centre today.
Brian Kingston, CEO of Brookfield’s real estate business, said “Today’s announcement demonstrates the strong and enduring demand for best-in-class real estate around the world as well as the strength and maturity of our APAC franchise.
“Our experience buying, selling and operating high quality assets allows us to continue to deliver value for our investors throughout market cycles.”
Anthony Kang, CEO of ARA Korea, said: “The outlook for the hotel industry remains positive, and we plan to continue seeking similar opportunities both domestically and internationally.”
Kang said with the acquisition of Conrad Seoul, ARA Korea aimed to strengthen its presence in the Yeouido area, combining the brand value of Conrad Seoul with ARA Korea’s global asset management capabilities to maximize the hotel’s profitability.”
ARA Korea REF currently owns Parc1 Tower II in Yeouido, acquired for approximately KRW1trn in 2020 for its portfolio which includes Seoul Square, acquired for approximately KRW1trn in 2019.
Nihat Ercan, CEO of JLL’s hotels and hospitality business in Asia Pacific, said: The Conrad Seoul transaction will reaffirm our confidence in the continued interest in the Korean hospitality market as the hotels’ performance stabilises robustly.
“The Conrad Seoul attracted a wide local and international buyer pool and we’re delighted to have delivered an exceptional result for Brookfield.”
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