Namsan State Tower, Bought at Record Price in 2019, Today

Asset manager Mirae Asset Global Investments is reportedly considering selling State Tower Namsan, which it purchased at a record price seven years ago. The potential sale of this flagship Korean office building is drawing keen attention, as it could have significant implications for the office market and real estate fund investors.

According to the investment banking (IB) industry and Yonhap News on the 7th, the process is in its early stages, with lead managers for the sale being selected from multiple real estate advisory firms. No request for proposal (RFP) has been issued yet.

In April 2019, Mirae Asset Global Investments acquired the building from the Abu Dhabi Investment Authority (ADIA) for 588.6 billion won. The transaction price at the time, about 29.12 million won per 3.3 square meters, was the highest ever for an office transaction in Seoul's central business district (CBD).

Completed in 2011, State Tower Namsan is an office building located on Toegye-ro in Jung-gu, Seoul. Spanning six basement floors and 24 above-ground floors with a gross floor area of 66,799 square meters, it sits between Myeongdong and Hoehyeon stations on Subway Line 4. Major tenants include the Korea Investment Corporation (KIC), global consulting firm Bain & Company, Pfizer Pharmaceuticals Korea, and BMW Korea.

Amid recent discussions on relocating public institutions to regional areas, the possibility of KIC moving out of Seoul has also been raised.