IGIS puts office tower, 2 nearby hotels on market in bundled sale

Prime office complex AP Tower and two adjacent hospitality properties in Seoul’s Gangnam Business District have been put up for sale in a bundled deal, according to investment banking sources on Monday.

The South Korean asset manager recently sent a request for proposals to real estate advisory firms to pick the manager of the sale.

In 2021, IGIS acquired AP Tower, formerly The Pinnacle Yeoksam, from Pebblestone Asset Management for 40.1 million won per 3.3 square meters, or one pyeong, for a total of 175.6 billion won. It was then a record price per pyeong, the base Korean unit of property.

Completed in 1994, the property underwent a renovation in 2020. It is a 16-story office building with three underground floors, spanning a total floor area of 14,432 square meters.

The two adjacent buildings included in the bundled sale are Ana Hotel, built in 2002, and Montmartre Motel, built in 1988. They are owned by domestic real estate developer AP Group, which also owns AP Tower.

Initially, AP Group had planned to redevelop the surrounding areas of AP Tower, but abandoned the plan to instead acquire assets in Samseong-dong, also in the Gangnam Business District.

The three properties on the market have a combined land area of around 1,948 square meters in the Teheran-ro area.

IGIS is also considering selling the assets separately, sources said.

Write to Gyeong-Jin Min at min@hankyung.com

Yeonhee Kim edited this article.