View of Westgate Tower located in Seodaemun, Seoul. /Courtesy of Hyundai Investment Asset Management

The 'Westgate Tower' located in front of Exit 8 of Seodaemun Station in Seodaemun-gu, Seoul, has come up for sale. It has been three years since Heinz, one of the world's top three real estate investment companies, designated it as its first investment in Korea in June 2022.

According to investment banking (IB) industry sources on the 10th, Hyundai Investment Management recently sent a request for proposal (RFP) to real estate advisory firms to select a lead manager for the sale of the Westgate Tower. The lead manager is expected to be selected next week, with bidding scheduled for the second week of September. The goal is to complete the sale within the year.

A representative from Hyundai Investment noted, "Given the unprecedented scale of office space expected to be supplied in the central business district (CBD) of Seoul in 2027-2028, we assessed that now is a favorable market environment to proceed with the sale."

Earlier, in June 2022, Heinz purchased the building from Hyundai Investment for approximately 230 billion won (25 million won per pyeong). The investment was made in the form of a corporate fund established by Hyundai Investment. This was Heinz's first office building investment after establishing a company called 'Heinz Korea Real Estate.' However, even after the ownership of the building changed to Heinz, the management of the fund has continued to be handled by Hyundai Investment.

The Westgate Tower, located at 70 Chungjeong-ro in Seodaemun-gu, Seoul, is a building with 7 basement floors and 19 above-ground floors, with a total floor area of over 30,000 square meters. It was completed in December 2020. Major tenants include NH Nonghyup Life and Nestlé Korea. Its location, just a minute's walk from Seodaemun Station, along with wide standard floor areas and high ceilings, are notable features.

The market estimates that the sale price of the Westgate Tower will be in the mid-range of 30 million won per pyeong. An industry insider familiar with the deal stated, "After acquiring the building, Heinz carried out renovations, and within one year, the rental rates increased by over 30%, achieving a 99% occupancy rate. Given the somewhat high projected sale price, potential buyers are expected to be mostly core domestic funds like the National Pension Service rather than foreign entities."

Heinz, one of the world's top three real estate investment companies, was established in 1957 in Houston, Texas. It is a global investment firm operating in 30 countries worldwide. As of last year, it had assets under management (AUM) reaching $93 billion. Recently, it opened a branch in Korea and is actively pursuing domestic real estate investments.

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