KKR has agreed to buy Namsan Green Building, a 57,574sqm office building in Seoul, South Korea.
IPE Real Assets understands that IGIS Asset Management has sold the interests of its investors, including South Korea’s National Pension Service, in funds that it managed under mandates from these investors.
The deal was transacted at “north of US$300m” (€272m).
IGIS has co-invested with KKR and will undertake extensive renovations and re-leasing over the next three to four years.
KKR is making its investment primarily from Asia Real Estate Partners, KKR’s Asia-dedicated value-add and opportunistic real estate fund.
The building, completed in 1994, houses the head office of SK Broadband, a subsidiary of SK Telecom.
David Cheong, managing director, real estate at KKR, said: “Our investment in Namsan Green Building provides us with a unique opportunity to acquire a high-quality asset in a strategic location.”
Cheong said it also provided an opportunity to add value by leveraging the firm’s real estate expertise to enhance its offerings for today’s modern office demands.
Namsan Green Building is KKR’s latest real estate investment in South Korea, and adds to past office investments in the country including the Namsan Square office tower, the K Twin Towers commercial property and the Centerfield office complex.
Last July, KKR was part of a consortium, led by IGIS Asset Management, to buy Shinhan Investment Headquarters in Seoul for US$487m.
KKR’s Asia Pacific office portfolio includes the Twenty Anson office building in Singapore, and other assets across Japan.
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