Canada Pension Plan Investment Board (CPPIB) and GIC have entered into a joint venture partnership to acquire Kumho Asiana Main Tower, a Grade A office building in Seoul, from Kumho Asiana Group, parent of Asiana Airlines, for KRW418 billion (US$380 million).
Following this transaction, CPPIB and GIC will each own a 50 per cent stake in this landmark property, which is located in the centre of Gwanghwamun, a core office, government and cultural precinct in Seoul’s Central Business District, offering good access to Gwanghwamun Station, a key public transport hub.
Due to its prime location, surrounding amenities and historical and cultural importance, the Gwanghwamun district is favoured by both local and multinational tenants.
“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, CPPIB.
He added that the investment reflects CPPIB’s desire to increase its investments in the Asia Pacific region, alongside GIC, one of the pension fund’s long-standing partners.
The property was sourced and will be managed by DWS (formerly Deutsche Asset Management), one of the world’s leading asset managers.
Lee Kok Sun, Chief Investment Officer, GIC Real Estate, said GIC has been investing in South Korea since the late 1990s.
“This investment reflects our confidence in South Korea’s continued growth and commitment to identifying attractive opportunities in this market,” he said.