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| IFC Seoul on Yeouido / Courtesy of Mirae Asset Global Investments |
By Anna J. Park
Mirae Asset Global Investments was tapped as the preferred bidder for the purchase of the International Finance Center (IFC) Seoul, located in the Yeouido financial district. According to local investment banking sources, Toronto-headquartered Brookfield Asset Management ― the current owner of IFC Seoul ― notified the asset management subsidiary of Mirae Asset Financial Group on Wednesday that it had been selected as the preferred bidder. The two companies are slated to carry out the remaining procedures to close the deal by the end of the third quarter this year.
The purchase deal amounts to slightly over 4 trillion won ($3.2 billion). As Brookfield Asset acquired IFC Seoul in 2016 from its previous owner, AIG Seoul, for around 2.5 trillion won, the asset manager's six-year ownership is expected to fetch returns of over 1.5 trillion won in profits.
When the deal is finalized and completely closed with the payment, Brookfield Asset will pay taxes for the sale in Korea.
Sources familiar with the deal said Mirae Asset's superior real estate investment track record, as well as its stable capacity to draw quality investors and money, were part of the key reasons behind its selection.
Mirae Asset Global Investments plans to set up a new private real estate investment trust (REIT) to finance the purchase deal. The asset manager is also expected to invest its own capital for the deal.
The building complex is comprised of the three IFC Office Towers, Conrad Seoul Hotel and IFC Mall. Major global firms such as AIG, IBM Korea, BNY Mellon and Deloitte Anjin currently have their offices in the complex. IFC Seoul was jointly developed by the Seoul Metropolitan Government and AIG Group starting in 2006.
