KKR-led consortium buys South Korea real estate for $1.9b

A KKR & Co.-led consortium has purchased a mixed-use real estate project under development in South Korea’s Gangnam business district for 2.1 trillion won ($1.9 billion).

Additional terms of the transaction were not disclosed.

The consortium, which includes National Pension Service of Korea and IGIS Asset Management, South Korea’s largest real estate fund manager, bought the property from engineering firm Daor E&C, KKR and IGIS.

Currently under construction, the property will primarily consist of prime grade office space, amenity retail space and a five-star hotel, with a gross floor area of 239,188 square meters (2.57 million square feet) and net leasable area of 121,707 square meters (1.31 million square feet). A 20-year master lease agreement for the 263-room hotel has been signed with Shinsegae Chosun, an experienced and best-in-class hotel operator.

KKR’s investment is being funded from KKR Asian Fund III. The investment is KKR’s thir