This article was published on June 20, 2025, at 2:19 p.m. on the ChosunBiz MoneyMove site.
IGIS Asset Management is acquiring the Seoul International Tower (SI Tower), the headquarters building of Hyundai Mobis. It has been confirmed that after being selected as the preferred negotiator in March, they conducted due diligence until recently and made a final decision.
On the 20th, according to the investment bank (IB) industry, IGIS Asset Management held back-to-back board meetings and shareholder meetings for the 'IGIS Value Up No. 1 REITs' to approve agenda items and signed a contract for the SI Tower acquisition with KB Asset Management. The purchase amount is 897.1 billion won. Including additional costs such as acquisition tax and advisory fees, as well as capital procurement and facility investment (CAPEX) costs according to remodeling plans, the total transaction value is around 1 trillion won.
The SI Tower, currently used as the headquarters of Hyundai Mobis, is a valued asset located in the heart of the Gangnam area (GBD), one of the key business districts in Seoul. After being sold to the Netherlands-based financial firm Rodamco immediately after the IMF financial crisis, it changed ownership to ING. Subsequently, KB Real Estate Trust, Kookmin Bank, and Samsung Fire & Marine Insurance acquired it for about 400 billion won in 2009, and KB Asset Management managed the building after taking over the fund and put it up for sale at the end of last year.
The SI Tower is an office building located at 203 Teheran-ro, Gangnam-gu, Seoul. It has 8 basement floors and 25 above-ground floors, with a land area of 3,587㎡ and a gross floor area of approximately 66,202㎡ (20,026 pyeong). The SI Tower, a large office building adjacent to Teheran-ro, is regarded as having high investment value. Currently, about 70% of the total area is leased by Hyundai Mobis under a long-term contract, making it an asset capable of providing stable rental revenue. Nokia, Korea Santhera, and Seoul Guarantee Insurance also lease some floors.
The bidding that preceded the process was highly competitive, with nine domestic and foreign investors participating. Among them, KB Asset Management shortlisted IGIS Asset Management, Kyobo Asset Trust, BentallGreenOak (BGO), and others. After conducting interviews regarding funding with these candidates, they ultimately selected IGIS Asset Management.
IGIS Asset Management established the IGIS Value Up No. 1 REITs in April to use as the acquisition vehicle for the SI Tower and received a business license from the Ministry of Land, Infrastructure and Transport. The total loan amount, excluding equity investments, is 671 billion won. It consists of Tranche A (interest rate 3.8%) 190 billion won, Tranche B (3.9%) 380 billion won, Tranche C (4.2%) 13 billion won, and Tranche D (6.0%) 88 billion won.
With this acquisition of the SI Tower by the REITs division of IGIS Asset Management, the assets under management (AUM) are expected to exceed 3 trillion won. An industry insider noted, "The SI Tower is an asset where all floors are currently leased out, except for vacancies on the 15th and 24th floors, ensuring a stable cash flow."