Invesco Real Estate has sold a KRW520bn (€345bn) office tower in South Korea’s capital to a real estate investment trust managed by Koramco.

The $91bn (€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’s 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: “Majestar 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.”

Schilling said the sale price achieved is almost double the firm’s original purchase price.

Gideon Lee, the head of Korea for Invesco Real Estate, said: “Supported 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.

“Our expectations came true as we leased an empty, newly constructed building to full occupancy and subsequently increased rents through active asset management.”

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