JLL advises Mirae Asset Global Investments on prime Seoul office transaction
Coveted Alphadom Tower building in Pangyo Business District sale closes amidst challenging market environment.
SEOUL, 15 MAY 2023 - JLL (NYSE: JLL) today announced that it has advised Mirae Asset Global Investments on the sale of Alphadom Tower in the Pangyo Business District in Seoul. Acting as the sole sales advisor, JLL negotiated the transaction on behalf of Mirae Asset Global Investments to buyer Samsung SRA for KRW691 billion ($516 million).
The prime office building is located in Pangyo, Seoul’s fourth major business district. It comprises a gross floor area (GFA) 87,901.58 m2 set across both office and retail space. The property is 97% occupied (100% of the office is occupied) by blue-chip tenants and the office building is anchored by Kakao, one of Korea’s leading technology conglomerates.
“The closing of Alphadom Tower represents one of the most significant office building transactions in Korea this year. Even in extremely challenging financial market conditions, this transaction showed that a prime office building in a core location is still attractive and can solicit investors’ appetite. Additionally, strong interest from international and domestic investors in Alphadom Tower proves that investors remain confident in the strong market fundamentals and long-term growth story of core office buildings in Korea,” says Chae Hun Chang, Managing Director, JLL Korea.
Alphadom Tower was completed in 2018 and serves as an anchor location for the Pangyo Business District, commonly referred to as the Silicon Valley of Korea. The area is also an essential research and development hub of biotechnology, nanotechnology, and culture technology, all of which are rapidly becoming key-drivers of the Korean economy, underscoring the property’s attractiveness to investors.
The deal is significant given the sharp rise in the basis interest rates has raised funding costs and increased uncertainty. According to JLL analysis, the volume of office transactions in the second half of the year is expected to decrease year-on year as liquidity dries up in the market.
Furthermore, the firm expects that Pangyo will remain a landlord favoured market to limited new supply. A limited amount of new office supply is expected in Korea over the next five year and the landlord favoured market is expected to continue. In the near term, Pangyo will receive new supply through the Pangyo Techno Valley 2 and 3 but ownership, tenant restrictions, and lack of transit connectivity will limit its impact on Pangyo's Central Commercial Area.
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 106,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.