Invesco Real Estate, the property arm of US investment management firm Invesco, has sold a Seoul office tower to a REIT vehicle managed by Koramco for 520 billion won ($385 million).
Located in the city’s major business district Gangnam, Majestar City Tower B is a 17-storey, mixed-use development comprising office, retail and residential, according to a statement on Tuesday.
The property was acquired by Invesco Real Estate in 2017 for its dedicated core programme in Asia Pacific and has delivered a sale price that is almost double the original purchase price six years ago, according to Ian Schilling, Head of Core Funds, Asia Pacific for Invesco Real Estate.
Majestar City features a floorplan of over 46,000 sqm, which was newly built at the time of purchase as a high-specification Grade A office, designed with green credentials and energy-saving attributes.
“As active real estate managers, the selective and well-timed sale of assets to rebalance portfolios and realize embedded value is always a key element of our investment process, and our secular convictions mean we believe now is the right time to divest,” said Schilling.
“Majestar was previously a fringe office location, but we identified strong growth potential in the area due to the expansion of the Gangnam Business District office market and a significant shortage of future office supply. Our expectations came true as we leased an empty, newly constructed building to full occupancy and subsequently increased rents through active asset management,” Gideon Lee, Head of Korea for Invesco Real Estate.
