Who will become new owner of IFC Seoul?

The International Finance Center (IFC) Seoul, located in the Yeouido financial district / gettyimagesbank

By Anna J. Park

The International Finance Center (IFC) Seoul, located in the Yeouido financial district of the capital, is searching for a new owner.

According to the investment banking (IB) industry, Eastdil Secured ― a New York-based global real estate investment banking company ― has been managing the sale process, and a total of five institutional investors were shortlisted for the purchase during the past month: ARA Korea, Mastern Investment Management, KORAMCO REITs & Trust, IGIS Asset Management and MIDAS Asset Management.

Eastdil Secured is expected to select a preferred bidder out of the potential buyers sometime this month, after conducting further research and due diligence on the shortlisted candidates.

The building complex ― comprised of three IFC Office Towers, Conrad Seoul Hotel and IFC Mall ― was jointly developed by the Seoul Metropolitan Government and AIG Group starting in 2006.

Currently, Toronto-headquartered Brookfield Asset Management owns IFC Seoul, after purchasing it in 2016 from the previous owner, AIG Group, for around 2.5 trillion won ($2.06 billion). As the IFC Seoul complex is estimated to be worth up to 4 trillion won, Brookfield is expected to rake in a profit of some 1.5 trillion won after just six years of ownership.

The five shortlisted potential buyers have each partnered with solid financial institutions to secure funding for the acquisition deal.

Both ARA Korea and Mastern Investment have partnered with NH Investment & Securities to secure the necessary funds for the real estate purchase. ARA Korea cooperated with NH Investment in other real estate investments in recent years. The asset management company and NH Investment jointly purchased Seoul Square for 988 billion won and Parc1 Tower for 955 billion won.

KORAMCO REITs & Trust has joined hands with Samsung Securities to finance the deal, while the company appointed Avison Young Korea as an acquisition advisory firm, aiming to search for potential overseas investors for the deal. Avison Young is a global commercial real estate company headquartered in Toronto, which shares a common regional background with the current owner of IFC Seoul, Brookfield Asset Management.

MIDAS Asset Management has partnered with overseas investors for the IFC Seoul acquisition deal. The asset management company has a track record of acquiring some 950 billion won worth of assets and aims to increase its asset investment volume with the IFC Seoul deal.