Nexon named preferred bidder for 50% of office tower from KTCU

Gaming giant Nexon Co. is set to acquire a 50% stake in the Autoway Tower, an office building in Seoul's Gangnam business district, from the Korean Teachers’ Credit Union (KTCU).

“The bid range is unknown, while the property value may reach 600 billion won ($452.9 million),” an investment banking source said. The KTCU is seeking liquidity through the sale of its shares amid deteriorating market conditions, the source added.

South Korea’s largest real estate investment firm IGIS Asset Management Co. recently selected Nexon as the preferred bidder for the deal, according to investment banking sources on Nov. 25. As a potential strategic investor, the gaming giant beat out other bidders in terms of the deal size and its real estate management plan.

Nexon is said to be considering moving some of its employees to the tower, as well as setting up its own R&D facilities there.

Autoway Tower has 14 stories, five of which are underground, and a total floor area of 47,308 square meters. In 2014, the KTCU acquired the property from SK Networks Co. via IGIS’s fund soon after construction was completed.

For the 309 billion won deal, the KTCU injected 130 billion won worth of equity and borrowed funds to cover the remaining value.

In August, the tower earned platinum certification — the highest level — for Leadership in Energy and Environment Design (LEED) from the U.S. Green Building Council. The property's current lessees include Hyundai Motor Co. and a Google for Startups Campus. 

Write to Ji-Hye Min at spop@hankyung.com
Jihyun Kim edited this article.