Standard Chartered makes Korea development play

The real estate unit of Standard Chartered Private Equity has teamed up with a local operating partner to acquire a mixed-use site in Seoul for $43.5m.

Standard Chartered Private Equity’s real estate unit, Principal Finance Real Estate, has led an investment in a mixed-use development site in Seoul.

The firm has teamed up with a local operating partner GS Retail to acquire a 63,000-square-feet site in Insadong, Seoul for $43.5 million. The site is slated for development into a mixed-use, integrated retail and hotel complex with a gross floor area of 488,000 square feet.

The site is being acquired from Korean insurer Samsung Fire & Marine, who will continue to participate in the project as a finance provider.

GS Retail will work as the project’s development manager and will continue to manage the retail component upon completion. A business hotel operator subsidiary of the Korean real estate company, Parnas, will manage and operate the project’s hotel component.

Construction of the project is scheduled to commence in May 2017.

Standard Chartered Private Equity is the private equity arm of Standard Chartered Bank. The private equity arm focuses on companies whose principal operations and management are located in Asia, Africa or the Middle East.

Since inception in 2002 SCPE, which makes investments through the bank’s balance sheet, has invested over $6 billion in more than 100 companies.

The real estate unit of the firm had previously made several plays in India. Back in July 2015, the firm teamed up with the Asian Development Bank, the International Finance Corporation, and the Shapoorji Pallonji Group, a Mumbai-based developer to invest in affordable housing projects across India. It was also involved in Kohlberg Kravis Roberts’ (KKR) first property deal in India in June last year when the two firms joined forces to provide loan to the Wadhwa Group, another Mumbai-based developer, for a residential development project.