Korea Investment Real Asset has bought a commercial building in the centre of Seoul for KRW1.28trn (€712m).
The 23-storey Seoul Square office block was previously owned by ARA Private funds, now owned by investors, including an affiliate of Sumitomo Mitsui Finance and Leasing Co, which bought the business in 2024.
The ARA Korea fund acquired Seoul Square in 2019 for approximately KWR1trn before Singapore-based parent, ARA, was taken over by ESR in 2022.
The office block was completed in 1977 and was the former headquarters of Daewoo Group. It underwent extensive remodelling in 2010, and currently it houses several domestic and foreign companies.
JLL and Savills Korea acted as sales advisors on the transaction.
Lee Keehoon, head of JLL Korea Capital Markets, said: “It is notable that a leading financial group with development expertise participated in this landmark deal in downtown Seoul.
“This means that the prospects for office investment are positive, as the area around Seoul Station is set to be transformed into a modern business district as part of the planned urban environment improvement project.”
A previous version of this story incorrectly identified ESR as the seller of the 23-storey Seoul Square office block. The asset was owned by an affiliate of Sumitomo Mitsui Finance and Leasing Co.
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