Keppel acquires office tower in Seoul’s CBD for $228.7 mil
Keppel Corporation, on Dec 19, introduced that it has proposed to acquire Samhwan Building, a freehold 15-storey workplace tower found in Seoul, South Korea, at a purchase price of KRW220 billion ($228.7 million).
“As the business and economic center of South Korea, Seoul has observed a climbing demand for quality office in the city. We are pleased to team up with Keppel Land on the procurement of Samhwan Construction, an uniquely situated prime asset in the heart of the main downtown, which is wellpoised to record this increasing demand. Keppel Resources has actually managed near to $3.4 billion of assets with gross floor location of 6.2 million sq ft in South Korea from 2004, and also we are confident that our seasoned team, active possession administration on the ground plus robust value creation techniques, will enable us to produce excellent returns for our funds’ clients,” says Christina Tan, CEO of Keppel Capital.
“Keppel Land is thrilled to broaden right into South Korea with the acquisition of Samhwan Property in partnership with the exclusive funds under Keppel Capital. This joint financial investment not only harnesses the group’s corresponding toughness across real estate services and even property monitoring yet also strengthens Keppel’s asset-light company model which make use of 3rd party funds for development,” claims Louis Lim, Chief Executive Officer of Keppel Land.
Following the SHA, Keppel Land and KAMTF IV are going to sign up for shares in the JVCo, and will have a shareholding interest of roughly 55.93% and also 44.07% respectively. Both Keppel Land and KAMTF IV will certainly furthermore prolong stockholders’ loans of approximately US$ 113.2 million ($153.8 million) to the JVCo as well as carry out an extra funding commitment of approximately US$ 4.84 million, in portion to their shareholding interest rate, for the acquisition of the property.
As soon as the real estate has been purchased furthermore when the pertinent governing license has indeed been protected, Keppel is going to carry out property enhancement efforts (AEIs), such as a horizontal broadening, to expand the structure’s leasable workplace. A renovation of the structure’s presenting spaces will also be performed in a bid to enhance the estate’s worth.
Samhwan Building at the moment has a total entire floor area (GFA) of 31,403 sqm. It stands in Seoul’s main downtown (CBD) of Jongno-gu and bordered by Korean palaces in the UNESCO World Heritage List. The building controls exceptional views of the surroundings. It is a three-minute step from the Anguk Station on the Seoul Subway line three, plus a 30-minute drive from the other essential business sections of Gangnam and Yeouido in Seoul.
Upon the finalization of the deal, in which is slated to happen at the end of December, Keppel Land will likely maintain a 39.5% efficient interest in Samhwan Building, while the remaining 31.1% as well as 29.4% effective stakes will be acquired by KAMTF IV along with KB Bank Discretionary Fund specifically.
Keppel Land Limited, Keppel Asia Macro Trends Fund IV (KAMTF IV) and KB Bank Discretionary Fund, have already entered into stockholders’ agreements (SHA) with the joint project firm (JVCo), Gaenari (IV), in network with the suggested purchase.
Keppel, in its report, says it will be integrating sustainability functions, like high-performance establishment exteriors, energy-saving air conditioning and heating unit, wise lighting effects systems, indoor environmental quality tracking in addition to smart structure controls, to enhance the property’s operational efficiencies and efficiency.
KAMTF IV as well as KB Bank Discretionary Fund are handled by Alpha Investment Partners Limited and Keppel Investment Management Co., Ltd specifically. Alpha Investment Partners and Keppel Investment Management Co. are both wholly-owned subsidiaries of Keppel Capital Holdings.
“When refurbishment labors are finished, Samhwan Property will be a masterpiece in South Korea of Keppel Land’s Lasting Urban Renewal capabilities, which seek out digital innovations to retrofit, future-proof and even expand the life-span of business buildings,” Lim adds.
Shares in Keppel Corp closed at $7.33 on Dec 16.
