NCSOFT’s NC Tower up for sale with its value estimated at $272 million

The sales of several office buildings along Teheran-ro in Seoul's upscale Gangnam Business District (GBD) are gaining momentum.

The bidding for the sale of NC Tower, owned by NCSOFT Corp., a major South Korean game developer and publisher, is slated for Jan. 13, according to investment banking industry sources on Friday.

Analysts said the property sale would be a key gauge of business conditions for GBD office properties.

NCSOFT and its two sales managers – CBRE Group Inc. and Deloitte Anjin LLC – will begin accepting bids for NC Tower from interested parties on Monday.

The office building is the first major commercial office building auction of the year.

The sale comes about eight months after NCSOFT announced its intention to sell the office building in Seoul’s Samseong-dong district in May 2023.

Typically, real estate transactions proceed to auction within two to three months after selecting a sales advisor. The protracted process suggests NCSOFT has made considerable efforts to make the deal a success, sources said.

DEAL’S VALUE

NC Tower is estimated at 400 billion won ($272 million), given the sales price of similar office buildings in the region.

Similar assets along Teheran-ro, such as the Arc Place and KOREIT Tower have been valued at over 40 million won per 3.3 square meters, according to industry officials.

The 15-story NC Tower with seven underground floors is a mid-sized asset, boasting a total gross floor area of 30,913 square meters.

Industry officials said the chances of a successful sale of NC Tower are high as the property is a sought-after asset in the 300 billion won-500 billion won range.

According to GenstarMate, a Korean real estate research firm, the office buildings market in Seoul bounced back for the first time in four years in 2024, with transaction volume soaring 78.7% to 13.4 trillion won from the year prior.

Office buildings that changed hands in the GBD in 2024 included the Arc Place, which sold at 791.7 billion won and KOREIT Tower, which traded at 480 billion won.

In a positive sign for the office market this year, Korea’s state fund and its largest investor, the National Pension Service, plans to pour 2 trillion won into the domestic real estate market in 2025.

GBD: PRIME LOCATION FOR STRATEGIC INVESTORS

GBD is a prime location for strategic investors seeking office buildings in Seoul, though prices per 3.3 square meters are relatively high.

The sale of Gangnam N Tower, owned by KB Real Estate Trust Co., is also gaining traction.

The tower is scheduled for auction next month, with plans to close the deal by the end of this first half.

KB Real Estate Trust acquired Gangnam N Tower in 2018 for 468 billion won.

Located at 129 Teheran-ro, Gangnam N Tower is a 24-story building with seven underground floors, boasting a total gross floor area of 51,120 square meters.

Other GBD office properties up for sale include Samseong-dong Building and BNK Digital Tower.

Samseong-dong Building, owned by Kyobo Asset Trust Co., has some well-known tenants such as Kolon Industries Inc. and iMarketKorea Inc.

BNK Digital Tower, owned by BNK Asset Management, is located near Gangnam Station, a transfer hub for Seoul Metro Line 2.

Write to Byeong-Hwa Ryu at hwahwa@hankyung.com

In-Soo Nam edited this article.