Colliers closes three Korean real estate deals worth US$780 mil in May

By Atiqah Mokhtar

/ EdgeProp Singapore |

May 25, 2023 9:15 AM SGT

Namsan Green Building, one of three buildings transacted in deals brokered by Colliers in May (Picture: Colliers)

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SINGAPORE (EDGEPROP) - In the last month, Colliers has closed three capital markets deals in Seoul, South Korea, with a combined value of US$780 million ($1.05 billion). The deals are the only major transactions that took place in the South Korean capital in that month, the real estate services company states in a May 22 press release.

The transactions include the sale of Munjeong Plaza, a mixed-use retail and office building in the Gangnam Business District, to local developer Dong Hoon for US$219 million, as well as the sale of office development Donghwa Building to Korean conglomerate JB Financial Group for US$202 million. The third transaction involved Namsan Green Building, with the office tower sold to global investment firm KKR in a deal valued at US$368 million.

Sungwook Cho, Colliers’ executive director for capital markets and investment services in Korea, says the deals mark a “promising shift” in the country’s investment landscape. “In the current market conditions with high interest rates and construction costs, we have seen the potential to overcome these challenges, and hold an optimistic outlook for investment in the region,” he says. Colliers’ Korean capital markets team has transacted over US$1.5 billion worth of deals in the last 12 months, including the three recent deals in May.

Chris Pilgrim, managing director, global capital markets, Apac, at Colliers, adds that the performance of the team in such a challenging environment is a testament to their expertise and dedication.

Meanwhile, Robert Wilkinson, managing director of Colliers Korea, notes that the transactions show that opportunities remain for investors in South Korea despite high interest rates. “The fundamentals of the Seoul market remain rock solid. Seoul has the lowest vacancy rate of any major global city and demand remains strong,” he observes.

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