KKR & Co., South Korean real estate fund manager IGIS Asset Management Co. Ltd and the National Pension Service of Korea are buying a mixed-use property development in Seoul's Gangnam Business District for roughly 2.1 trillion won, taking into account completion costs.
A consortium led by engineering firm Daor E&C is selling the asset, which will feature a gross floor area of 239,188 square meters and a net leasable area of 121,707 square meters, offering prime office area, amenity and retail spaces, as well as a 263-room hotel. The five-star hotel will be operated by Shinsegae Chosun on a 20-year master lease, KKR said in a release.
KKR Asian Fund III is funding the investment on behalf of KKR, making it the private equity group's third real estate investment in South Korea. KKR previously invested in the K-Twin Towers office complex in Seoul, which was divested to Samsung SRA Asset Management in January for approximately 713 billion won in February.
KKR has committed about US$2 billion in equity and debt across almost 50 property transactions in the Asia-Pacific region since 2011. IGIS manages real estate assets valued at upwards of 22.6 trillion won.
As of Oct. 9, US$1 was equivalent to 1,133.84 won.