KKR acquires 23-storey office tower in Seoul

The property was acquired from a real estate investment trust operated by KOREIT, a domestic asset manager in Korea.

Built in 1978, Namsan Square is located at the gateway to Seoul’s central business district. It occupies more than 75,000 square meters across 23 floors of premium office and retail space.

Formally known as Kukdong Building, Namsan Square holds a LEED Gold green building certificate.

The consortium plans to upgrade the building façade, restrooms and the retail arcade without disruption to existing tenants.

KKR has committed more than US$1.4 billion of equity in its pan-regional real estate strategy, as of December 31, 2019.


David Cheong, a director in KKR’s Asia Real Estate team, said, “South Korea holds terrific potential for real estate investment, and the market is a core part of KKR’s regional real estate strategy. Namsan Square is particularly compelling as one of Seoul’s preeminent commercial buildings, and we are extremely pleased to have the opportunity to collaborate with IGIS and SK D&D to significantly improve existing tenants’ overall experience and work-life balance by executing various refurbishment and value-add works.”

Junho Pok, head of real estate development at IGIS, said: “We are excited to extend our relationship with a world-class investor like KKR to invest in this high-quality property at the gateway of Seoul’s business district. The IGIS team looks forward to bringing our extensive experience renovating real estate projects to Namsan Square and enhancing this property for tenants in the years to come.”

Sun-Pyo Hwang, head of the real estate development division at SK D&D, said: “This is a compelling investment made alongside strong local and global partners. Through proactive management and our ability to enact key improvements, we look forward to adding value to Namsan Square and enhance the working experience for tenants.”

South Korea is a key part of KKR’s Asia real estate strategy, and Namsan Square is the firm’s fourth real estate investment in the country. Previous investments include The-K Twin Towers, a prime office complex located in Seoul’s Gwanghwamun district, Renaissance Parc, a mixed-use real estate development project in Seoul’s Gangnam business district, and the BLK Pyeongtaek Logistics Center development in Pyeongtaek.