Hines acquires KRW320 bil office building in Seoul

US-based global real estate investment manager Hines has acquired an office building in Seoul, South Korea, the firm announced on Oct 14.

While Hines did not disclose the financial terms of the deal, multiple Korean news outlets reported in August that the building had been sold for KRW320 billion ($308 million) to Gravity General Private Real Estate Investment Company No. 8, a unit under Korean investment firm Gravity Asset Management.

Hines has reportedly acquired 87% of the preferred stock in Gravity General Private Real Estate Investment Company No. 8.

The building was purchased from Hanssem, one of the largest furniture makers in South Korea. Hanssem will maintain its headquarters at the building under a long-term lease.

This is Hines’ second office investment in the country. In June 2022, the firm acquired the 322,917 sq ft Westgate Tower office building in Seoul’s CBD.

Harry Lee, country head of South Korea at Hines, says that Seoul offices continue to be one of Hines’ high conviction areas. He adds: “Given the building’s location and strong leasing fundamentals, we’re positive about the value the asset can bring to both investors and office tenants.”

Located at 179 Seongam-ro, Mapo-gu, Seoul, the office building occupies over 710,418 sq ft across 22 storeys. It is situated in Seoul’s Digital Media City, which is home to South Korea’s largest media and broadcasting companies.

:Harry Lee, country head of South Korea at Hines: Hines is positive about the office building’s value owing to its location and strong leasing fundamentals (Photo: Hines)

Hines plans to achieve the LEED Operation and Maintenance Gold certificate by enhancing its sustainability performance. LEED stands for Leadership in Energy and Environmental Design, a globally used green building rating system.

“Hines views sustainability as a value creation strategy. Energy efficiency measures reduce operational costs, and catering to tenant wellness has been good for leasing. We’re confident that Hanssem will be another example of how we’re able to replicate success,” Lee says.