(SEOUL) – Hines, a leading global real estate investment manager, today announced the acquisition of a fully stabilized office building in Seoul, South Korea. This sale and leaseback transaction highlights the firm’s deep local expertise and its focus on deals with alpha potential.
Strategically located at 179 Seongam-ro, Mapo-gu, Seoul, the Hanssem office building is 100% leased, 22 stories tall, and has a total floor area of over 66,000 square meters. It is a one-minute walk to Digital Media City (DMC) Station and situated in Seoul’s DMC – home to South Korea’s largest media and broadcasting companies.
The building is currently leased back to the seller, Hanssem Co., Ltd., as the anchor office tenant. Hanssem is one of the largest furniture makers in South Korea. The deal is a strategic capitalization for Hines to co-invest in the asset with Hanssem, who will maintain the building as its headquarters under a long-term lease.
“We’re pleased to partner with Hanssem to deliver Hines’ commitment to quality, sustainability, and tenant experience at their headquarters in Seoul,” said Harry Lee, country head of South Korea at Hines. “Seoul office continues to be one of our high conviction areas. Given the building’s location and strong leasing fundamentals, we’re positive about the value the asset can bring to both investors and office tenants.”
According to Hines research,1 office vacancy rates in South Korea have consistently stayed around 2% over the past two years, with rents in Seoul’s premium office buildings seeing double-digit growth in the same period, driven by healthy demand and supply constraints.
Hines aims to target the LEED O+M (Operation and Maintenance) Gold certificate for the newly acquired Hanssem office building by enhancing the asset’s sustainability performance.
“At Hines, we view sustainability as a value creation strategy,” said Lee. “Energy efficiency measures reduce operational costs, and catering to tenant wellness has been good for leasing. We’re confident that Hanssem will be another example of how we’re able to replicate success.”
In June 2022, Hines acquired Westgate Tower, a 30,000-square-meter office building in Seoul’s central business district. The Hines local team in Korea revitalized the asset through ESG upgrades, achieving 99% occupancy and higher rents within a year of acquiring the building.
About Hines
Hines is a leading global real estate investment manager. We own and operate $93 billion2 of assets across property types and on behalf of a diverse group of institutional and private wealth clients. Every day, our 5,000 employees in 31 countries draw on our 67-year history to build the world forward by investing in, developing, and managing some of the world’s best real estate. To learn more, visit www.hines.com and follow @Hines on social media.
1 As of 30 June 2024.
2 Includes both the global Hines organization and RIA AUM as of June 30, 2024.
