Canada Pension Plan Investment Board (CPPIB) and Singapore sovereign wealth fund GIC have widened their partnership with the acquisition of an office building in South Korea’s capital for KRW418bn (€326.3m).
The firms have joined in an equal partnership to buy the Kumho Asiana Main Tower in Seoul from Kumho Asiana Group.
Jimmy Phua, the managing director and head of CPPIB’s real estate business in Asia, said: “The opportunity to invest in one of the largest office markets in Asia through this prime office building fits well with CPPIB’s strategy to invest in top-tier, well-located real estate.
“In addition, this investment reflects CPPIB’s desire to increase our investments in the Asia Pacific region, and we’re pleased to do so alongside GIC, one of CPPIB’s long-standing partners.”
The property was sourced and will be managed by DWS.
Lee Kok Sun, the chief investment officer at GIC’s real estate arm, 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.”
CPPIB acquired its first retail asset in South Korea for $263m (€230m) in May 2015 through a joint venture with GIC.