Blackstone, the global investment firm, has recently finalized the sale of Arc Place, a prime office property in Seoul, to Koramco, a local fund manager. This transaction marks the largest real estate deal in Korea this year, adding a significant milestone to the country’s commercial property landscape.
The 62,748 square meter property, situated in the heart of Seoul’s Gangnam district, has been sold for just over KRW 792 billion (approximately $588 million), according to local media reports. This sizable deal reflects a price tag of KRW 12.6 million per square meter (KRW 41.7 million per pyeong), reaffirming the robustness of Seoul’s real estate market.
Over the years, Blackstone has diligently enhanced Arc Place, transforming it into a premier office asset that has attracted prominent global tenants, particularly from the technology and media sectors. Chris Kim, Head of Real Estate for Korea at Blackstone, expressed confidence in Arc Place’s future success under Koramco’s ownership, highlighting Seoul’s strong office market fundamentals.
The sale of Arc Place follows Blackstone’s strategic decision to divest the property, which was put on the market last year. After carefully evaluating various offers, Koramco emerged as the preferred bidder, sealing the deal in a testament to the property’s desirability and value.
Arc Place boasts a roster of prestigious tenants, including Warner Brothers Entertainment, Dyson, eBay, and local entities such as Lotte Capital and Viva Republica. Its prime location and high-quality amenities have made it a sought-after destination for businesses seeking premium office space in Seoul’s bustling commercial hub.
Koramco’s acquisition of Arc Place underscores the firm’s commitment to expanding its portfolio of prime real estate assets. The company has been actively pursuing opportunities in Seoul’s dynamic property market, capitalizing on the city’s robust demand for office space.
Seoul’s office market continues to exhibit resilience and attractiveness to investors, both domestic and international. With vacancy rates at historic lows and rents steadily rising, Seoul’s grade A office sector remains a favored investment destination.
Looking ahead, Seoul’s office market is expected to witness sustained growth, with significant demand from tenants and ongoing development projects. Investors like Koramco are poised to capitalize on these opportunities, driving further momentum in Korea’s commercial real estate sector.
