CPPIB, GIC venture acquires office property in Seoul’s CBD for $380m

The $260.5 billion Canada Pension Plan Investment Board and GIC, Singapore’s sovereign wealth fund, have entered into a joint venture partnership to acquire a grade A office building in Seoul from Kumho Asiana Group, parent of Asiana Airlines, for $380 million.

CPPIB and GIC will each own a 50 percent stake in the property, Kumho Asiana Main Tower, which is located in the center of Gwanghwamun, a core office, government and cultural precinct in Seoul’s Central Business District. The location offers good access to Gwanghwamun Station, a public transport hub.

“The opportunity to invest in one of the largest office markets in Asia through this prime office building fits well with CPPIB’s strategy to invest in top-tier, well-located real estate,” said Jimmy Phua, managing director and head of Real Estate Asia for CPPIB. “In addition, this investment also reflects CPPIB’s desire to increase our investments in the Asia Pacific region, and we’re pleased to do so alongside GIC, one of CPPIB’s long-standing partners.”

The property was sourced and will be managed by DWS (formerly Deutsche Asset Management), a global asset manager.

GIC has been investing in South Korea since the late 1990s, said Lee Kok Sun, chief investment officer for GIC Real Estate. “This investment reflects our confidence in South Korea’s continued growth, and commitment to identifying attractive opportunities in this market.”