This article was published on April 30, 2025, at 4:40 p.m. on the ChosunBiz MoneyMove site.
Lotte Insurance's office building, the Etiverse Tower (formerly Lotte Insurance Building), is up for sale. This comes four years after Capstone Asset Management acquired it from Lotte Insurance in 2021. Lotte Insurance has been leasing the building back under a sale and leaseback contract since selling the office.
On the 30th, according to the investment banking (IB) industry, Capstone Asset Management recently sent out a request for proposal (RFP) to commercial real estate transaction advisory firms and accounting firms to facilitate the sale of the Etiverse Tower. Capstone plans to select a lead manager soon and initiate formal procedures.
The Etiverse Tower, which is up for sale, is located in Namchang-dong, Jung-gu, Seoul. It is a prime-grade large office building with 2 basement levels and 24 above-ground floors, covering a total area of 44,477 square meters. In 2021, Lotte Insurance sold the building, which it had been using as its headquarters, to Capstone to secure financial soundness following the introduction of the new solvency system (K-ICS). The sale price was set at a total of 224 billion won, approximately 19 million won per 3.3 square meters.
Capstone has secured tenants through ongoing remodeling and a value-add strategy following the acquisition of the Etiverse Tower. Currently, numerous corporations and banks, including Lotte Insurance, which has continued to lease the building after its sale and leaseback, are tenants. In 2022, the Etiverse Group (formerly Youngwoo Digital) established its operations there, utilizing floors 16 to 22 with seven affiliated companies. Consequently, Capstone changed the building's name from Lotte Insurance Building to Etiverse Tower.
The central business district (CBD), where the Etiverse Tower is located, is considered a key area for active transactions of prime properties, along with Gangnam (GBD) and Yeouido (YBD). Notably, the Etiverse Tower is praised for its visibility and accessibility as it is adjacent to the Hyehwa Station on subway line 4 and Seoul Station on line 1. The underground arcade has a sufficient range of retail facilities, including dining areas and convenience services.
Considering that recent office transaction prices in the central business district have risen to the mid-30 million won range per 3.3 square meters, Capstone is expected to gain substantial profits from the sale. Last year, D Tower Donui-mun, sold by Mastern Investment Management to NH Nonghyup REITs, fetched 895.3 billion won (34.33 million won per pyeong). As a result, the industry is discussing a sale price of around 300 billion won for the Etiverse Tower.
However, the anticipated supply of numerous new offices in the central business district next year is seen as a negative factor. Notably, the Namsan N Tower, with a total area of approximately 20,880 square meters, and the Gongpyeong 15-16 district office, which is about 132,000 square meters, are set to be developed near Myeongdong Station.
An industry source noted, “Given that many office properties are currently available in the central business district and new supply is on the way, we need to watch the market’s performance.” At present, prime office properties are available in the central business district, including the Euljiro Signature Tower, used as headquarters by Kumho Petrochemical, as well as the Orange Center and Seoul Square.