Keppel acquires office tower in Seoul’s CBD for $228.7 mil
Keppel Corporation, on Dec 19, introduced that it has suggested to get Samhwan Building, a freehold 15-storey office tower situated in Seoul, South Korea, at an acquisition cost of KRW220 billion ($228.7 million).
“As the company and economic hub of South Korea, Seoul has actually viewed an increasing need for quality office in the city. We are pleased to team up with Keppel Land on the procurement of Samhwan Building, a distinctly located prime asset in the core of the central downtown, which is wellpoised to capture this increasing demand. Keppel Resources has handled close to $3.4 billion of properties with gross flooring location of 6.2 million sq ft in South Korea ever since 2004, and we are confident that our seasoned team, active asset management on the ground and robust worth creation techniques, will make it possible for us to produce good returns for our funds’ buyers,” claims Christina Tan, CEO of Keppel Capital.
“When repair efforts are accomplished, Samhwan Building will certainly be a showpiece in South Korea of Keppel Land’s Lasting Urban Renewal capabilities, which seek out electronic technologies to retrofit, future-proof and even extend the life-span of business buildings,” Lim includes.
When the commercial property has been acquired furthermore as soon as the appropriate regulatory authorization has been protected, Keppel will definitely carry out property enhancement campaigns (AEIs), that include a horizontal extension, to increase the structure’s leasable office space. A repair of the property’s presenting areas will certainly additionally be performed in a proposal to enhance the estate’s market value.
Under the SHA, Keppel Land and KAMTF IV are going to register for shares in the JVCo, and are going to have a shareholding interest rates of about 55.93% and 44.07% specifically. Both Keppel Land and also KAMTF IV will even expand stockholders’ loans of roughly US$ 113.2 million ($153.8 million) to the JVCo and undertake an extra financing commitment of approximately US$ 4.84 million, in portion to their shareholding interest rate, for the procurement of the real estate.
Samhwan Building presently has an overall gross floor area (GFA) of 31,403 sqm. It stands in Seoul’s core downtown (CBD) of Jongno-gu and bordered by Korean royal residences in the UNESCO World Heritage List. The property controls unmatched sights of the environments. It is a three-minute tour from the Anguk Station on the Seoul Subway line 3, and even a 30-minute drive from the other key business districts of Gangnam and also Yeouido in Seoul.
“Keppel Land is delighted to expand right into South Korea through the purchase of Samhwan Building in relationship with the reserved funds under Keppel Capital. This mutual financial investment not only utilizes the group’s complementary toughness across real estate services and possession supervision yet in addition enhances Keppel’s asset-light business version which leverages 3rd party funds for development,” claims Louis Lim, Chief Executive Officer of Keppel Land.
KAMTF IV and KB Bank Discretionary Fund are handled by Alpha Investment Partners Limited and Keppel Investment Management Co., Ltd specifically. Alpha Investment Partners plus Keppel Investment Management Co. are both wholly-owned subsidiaries of Keppel Capital Holdings.
Upon the finalization of the transaction, which is slated to happen by the end of December, Keppel Land will most likely keep a 39.5% efficient interest in Samhwan Building, while the remaining 31.1% as well as 29.4% reliable risks will certainly be acquired by KAMTF IV together with KB Bank Discretionary Fund specifically.
Keppel Land Limited, Keppel Asia Macro Trends Fund IV (KAMTF IV) and also KB Bank Discretionary Fund, have already become part of stockholders’ contracts (SHA) with the joint business company (JVCo), Gaenari (IV), in connection with the suggested procurement.
Keppel, in its statement, says it will certainly be integrating sustainability functions, including high-performance establishment exteriors, energy-saving cooling and heating systems, wise lighting systems, indoor ecological quality monitoring in addition to smart establishment controls, to boost the possession’s functional efficiencies and efficiency.
Stocks in Keppel Corp closed at $7.33 on Dec 16.
