Keppel Capital arm buys three Korean Grade A commercial buildings for $510m

The portfolio comprises Yeouido Finance Tower, Nonhyun Building and Naeja Building.

Keppel Capital Holdings (Keppel Capital), through Alpha Asia Macro Trends Fund III (AAMTF III), has entered into an agreement with a Korean asset management company to fully acquire three Grade A freehold commercial buildings located in three major business districts in Seoul for $510m (KRW430b), an announcement revealed.

The portfolio of three commercial buildings comprises Yeouido Finance Tower, located in the Yeouido business district (YBD), Nonhyun Building, located in the Gangnam business district (GBD), and Naeja Building, located in the Gwanghwamun central business district (CBD).

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Yeouido Finance Tower is a Grade A freehold 21-storey office and retail mixed-use development offering approximately 42,300 sqm in gross floor area (GFA), comprising approximately 39,100 sqm of office space and approximately 3,200 sqm of retail space. Yeouido Finance Tower's tenants are mainly from the insurance, financial and information technology sectors, such as Samsung Life Insurance and Tong Yang Asset Management.

Meanwhile, Nonhyun Building is a Grade A freehold 20-storey office and retail mixed-use development offering approximately 18,600 sqm in GFA, comprising approximately 16,700 sqm of office space and 1,900 sqm of retail space. Its tenants are mainly from the insurance and manufacturing sectors, including Hanwha Life Insurance and Fissler Korea.

Naeja Building is a Grade A freehold 15-storey office development offering approximately 13,000 sqm in GFA. The property is fully leased to local tenants, with global law firm, Kim & Chang, as anchor tenant.

The acquisition of the three buildings is expected to be completed in the second quarter of 2019.

AAMTF III is managed by Alpha Investment Partners (Alpha), the private fund management arm of Keppel Capital. Concurrently, Keppel Investment Management Co., the asset management arm of Keppel Capital in South Korea, will be appointed the local asset manager for the three properties.