Hines has acquired a KWR320bn (€216m) office building in Seoul, South Korea in a sale-and-leaseback deal with furniture maker Hanssem.
The 22-storey office building is located at Mapo-gu, in what is known as Seoul’s digital media city, home to South Korea’s largest media and broadcasting companies.
Harry Lee, country head of South Korea at Hines, said: “We’re pleased to partner with Hanssem to deliver Hines’ commitment to quality, sustainability, and tenant experience at their headquarters in Seoul.
“Seoul office continues to be one of our high conviction areas. Given the building’s location and strong leasing fundamentals, we’re positive about the value the asset can bring to both investors and office tenants.”
According to Hines research, office vacancy rates in South Korea have consistently stayed around 2% over the past two years, with rents in Seoul’s premium office buildings seeing double-digit growth in the same period, driven by healthy demand and supply constraints.
In June 2022, Hines acquired Westgate Tower, a 30,000sqm office building in Seoul’s central business district. The Hines local team in Korea revitalised the asset through ESG upgrades, achieving 99% occupancy and higher rents within a year of acquiring the building.
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