Blackstone has completed its first core-plus deal in South Korea with the acquisition of Capital Tower in Seoul. The total deal value is approximately KRW 450 billion ($380 million; €363 million), PERE has learned.
According to two people involved in the transaction, the deal was officially completed in November. The asset was owned by NH Insurance with Mirae Asset acting as the asset management company.
The 678,126 square-feet office tower is located in the Gangnam district of Seoul. The tower is currently understood to be 85 percent let, with Facebook, Warner Brothers and Lotte among the key tenants. PERE understands that once the asset is fully let the net operating income (NOI) should be around five percent.
Blackstone’s foray into core-plus in Korea comes after the firm has built a sizeable core-plus portfolio in Australia. In February last year, the New York-headquartered asset manager made its first core-plus deal in Asia-Pacific when it acquired a 25 percent stake in a Sydney office tower Liberty Place, in partnership with Ivanhoe Cambridge. The interest was acquired from LaSalle Investment Management.
Meanwhile, Mirae Asset has been retained as the asset management company via a share transaction process, according to one of the people familiar with the deal.
Savills advised Blackstone on the transaction.