Sale of Doosan Tower attracts bids from IGIS, Kiwoom, Korea Investment

The much-anticipated sale of Doosan Tower in Seoul’s central business district (CBD) has attracted bids from three interested parties – IGIS Asset Management Co., Kiwoom Asset Management Co. and Korea Investment & Securities Co.

According to investment banking industry sources on Monday, the three bidders submitted their interest in Doosan Tower, owned by South Korean real estate investment firm Mastern Investment Management Co.

Doosan Tower is the first major office building up for auction among commercial properties in the CBD this year.

Avison Young Korea Inc., S-1 Corp. and Colliers Korea manage the sale.

Doosan Tower is a 34-story building with seven underground floors, covering a land area of 9,410.7 square meters and a total floor area of 122,630.3 square meters.

Constructed in 1998, Doosan Tower has become a landmark building in the Dongdaemun fashion district. Currently, the building houses Doosan Group offices; Hyundai DF Co., Hyundai Department Store’s duty-free shop; and Doota Mall, a Doosan shopping mall.

DOOSAN TOWER ESTIMATED AT $687 MILLION

The sale of Doosan Tower comes after another major office building auction last month.

In January, NCSOFT Corp., a Korean game developer and publisher, put NC Tower in Seoul's upscale Gangnam Business District (GBD) on the market.

Earlier this month, a consortium of the Korea Scientists and Engineers Mutual-Aid Association (SEMA) and Pacific Asset Management Co. was selected as the preferred buyer of NC Tower.

The NC Tower sale, if finalized, will mark the largest office deal in the GBD.

In 2020, Mastern Investment acquired Doosan Tower from Doosan Group, under creditor management at the time, for 800 billion won ($549 million).

Industry watchers estimate the value of Doosan Tower at 1 trillion won ($687 million).

Mastern plans to shortlist qualified bidders and select a preferred buyer over the next few weeks.

UPCOMING MAJOR OFFICE BUILDING SALES

Several large office asset auctions in Seoul will continue through next month.

On Wednesday, KDB Life Tower, owned by KB Asset Management Co., will be up for auction, followed by Koramco Asset Management’s sale of Hyundai Motor Securities Building on Feb. 14.

Both buildings have reportedly attracted 10 to 20 institutional investors for due diligence.

The sale of Gangnam N Tower, owned by KB Real Estate Trust Co., is also gaining traction. An auction for the sale is slated for March 6.

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.

The auction of BNK Digital Tower, owned by BNK Asset Management, is slated for March 13. The building is located near Gangnam Station, a transfer hub for Seoul Metro Line 2.

Write to Kyung-Jin Min at min@hankyung.com
In-Soo Nam edited this article.