In the past one month Colliers completed three capital market deals that took place in Seoul, South Korea, that totaled 780 million dollars ($1.05 billion). These deals are the sole major transactions to have occurred within South Korea’s capital. South Korean capital in that month according to the real estate services company says in a press release on May 22.
The transactions involve selling Munjeong Plaza, a mixed-use office and retail complex within the Gangnam Business District, to local developer Dong Hoon for US$219 million. Also, the transfer of the office construction Donghwa Building to Korean conglomerate JB Financial Group for US$202 million. The third deal was the sale of Namsan Green Building, with the office tower being sold to a global investment company KKR in an agreement worth $368 million.
Sungwook Cho, Colliers’ executive director of the capital market and services for investment in Korea Sungwook Cho, Colliers’ executive director for capital markets and investment services in Korea, are the beginning of a “promising change” in the country’s investing landscape. “In the current economic climate that have high interest rates and construction costs, we’ve observed the potential to overcome these issues, and offer optimism for investment opportunities in Korea,” Cho says. Colliers’ Korean capital markets team has completed more than US$1.5 billion in transactions over the past 12 months which includes three recent deals that were signed in May.
Chris Pilgrim, managing director Apac’s global capital markets division. Apac Chris Pilgrim, managing director of global capital markets, Apac Colliers Adds that the work by the group in such a demanding environment is an indication of their dedication and expertise.
In addition, Robert Wilkinson, managing director of Colliers Korea, notes that these transactions demonstrate that there are opportunities exist for those who invest across South Korea despite high interest rates. “The basic principles that underlie the Seoul market remain solid. Seoul boasts the lowest vacancy rate among any city in the world and the demand is still strong,” he observes.