M&G Real Estate acquires 25.3% stake in Conrad Seoul Hotel in landmark South Korea investment

M&G Real Estate (M&G), acting on behalf of a separately managed account focused on value-added opportunities, has acquired a 25.3% stake in the five-star Conrad Seoul Hotel in South Korea for US$37.5 million (S$50.2 million). The acquisition brings M&G’s total assets under management in South Korea to US$3 billion.

Located in Seoul’s financial business district of Yeouido, the hotel is part of the International Finance Center Seoul. It has 434 rooms and caters to both business and leisure travellers, which allows it to maintain high occupancy and yield, adds M&G.

Following the acquisition, the group is set to optimise room layouts and repurpose event spaces in the hotel to boost revenue.

Martin Seol, head of targeted strategy at M&G Real Estate Asia, says: “As our first hospitality asset for this strategy, the Conrad Seoul Hotel provides portfolio diversification and demonstrates our approach in action across different property sectors.”

According to the group, the investment comes on the back of several recent value-added deals in the UK, Europe, and Asia, leveraging M&G’s expertise in executing higher return strategies.

Daniel Cho, head of Korea at M&G Real Estate, says: “As central business districts around the world evolve, value-add strategies can reposition existing buildings and upgrade assets to drive higher returns.”

Seoul’s hospitality sector is expected to see revenue reach nearly US$10 billion by 2029. Cho adds that the group’s expertise in identifying assets can be “future-proofed” to drive long-term value.

Additionally, the investment comes alongside the inclusion of BauMont Real Estate Capital in Europe, which has strengthened the group’s global real estate platform, says M&G. “This growth enables M&G to offer investors more opportunities across diverse sectors and regions, combining its proven track record with enhanced capabilities in Europe,” adds the group.