March 22, 2023

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[THE INVESTOR] KT AMC, real estate investment management arm of telecom giant KT, has acquired new office building Summit Tower in downtown Seoul for more than 800 billion won (US$747.20 million), according to industry sources on June 4. 

Hanho Construction, owner and developer of the 20-story building, has signed a contract with KT AMC for the purchase. CBRE Korea and Samsung Securities, the consortium managing its sale is set to make an official announcement soon. 

Earlier last month, a consortium of Koramco Reits & Trust and SK Telecom, was selected as the preferred bidder. But it fell through when SK pulled out.
The Summit Tower, located in Euljiro 4-ga, central Seoul, began construction in 2016 through a joint investment by Hanho Construction and Daewoo E&C. Hanho has a 62 percent stake, while Daewoo holds a 33 percent share in the building. When the Summit Tower, which boasts a combined floor space of 146,000 square meters, opens next April, it is set to become the third-largest office building in Seoul’s central district, followed by Gran Seoul and Mirae Asset Center 1 building. 

But securing tenants will become a critical issue, industry watchers say, especially after SK Telecom, which was planning to move some of its offices to the Summit Tower, backed out from the deal. Daewoo E&C, which plans to move its headquarters into the new building, will take up 60 percent of the space. But the rest is still vacant.

By Ahn Sung-mi (sahn@heraldcorp.com)