[THE INVESTOR] A consortium of US private equity group Kolberg Kravis Roberts and Korean asset management firm IGIS has pulled out from a bid for purchasing Centropolis office buildings in central Seoul after the talks fell through, according to industry sources on May 4.
Instead, M&G Real Estate, a real estate fund management unit of the UK insurer Prudential, has been chosen as the new preferred bidder. It bid over 1.1 trillion won or 27 million won per 3.3 square meters, topping KKR-IGIS’ initial offer.
CTCore, owner and developer of the 26-story twin tower buildings, is set to sign a memorandum of understanding with M&G Real Estate soon. It will negotiate a final price following a due diligence.
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Once the building is opened in June, Centropolis is set to break the record as the most expensive commercial building, outpacing last year’s two mega deals -- KEB Hana Bank headquarters worth 910 billion won and Signature Tower worth 700 billion won.
Savills Korea and Mateplus are managing the sale.
M&G Real Estate is actively expanding investments here, since it first entered the local market in 2004 when it bought Northgate Building in Jongno-gu and Nara Building in Gangnam-gu. In 2016, it sold Nara Building to Koramco Reits and Trust, making a profit of more than 100 billion won.
By Ahn Sung-mi (firstname.lastname@example.org)