M&G Real Estate has acquired a 25.3% stake in the five-star Conrad Seoul Hotel in South Korea for US$37.5m (€34.8m).
The investment on behalf of a separately managed account focusing on value-add opportunities brings M&G’s South Korea assets under management to around US$3bn.
Located in Yeouido, Seoul’s financial business district, the 434-room Conrad Seoul Hotel is part of the International Finance Centre Seoul. M&G plans to optimise room layouts and repurpose event spaces to boost revenue.
Daniel Cho, head of Korea, M&G Real Estate, said: “As central business districts around the world evolve, value add strategies can reposition existing buildings and upgrade assets to drive higher returns.
“Seoul’s hospitality sector is at an inflection point with revenue expected to reach nearly US$10bn by 2029. This acquisition demonstrates M&G’s expertise in identifying assets that can be future-proofed to stand the test of time.”
Martin Seol, head of targeted strategy, M&G Real Estate Asia, said: “As our first hospitality asset for this strategy, the Conrad Seoul Hotel provides portfolio diversification and demonstrates our approach in action across different property sectors.”
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