Savills Korea Advises on Sale of Four Amorepacific Regional Hub Office Buildings [fn Market Watch]

[Financial News] Global real estate services firm Savills Korea has been selected as the exclusive sales advisor for four regional hub office buildings owned by Amorepacific Corporation.
According to Savills Korea on the 14th, the assets up for sale are Amorepacific Corporation’s regional hub office buildings located in major metropolitan cities including Busan, Daegu, Daejeon and Gwangju. All of them are landmark office assets situated in prime locations within central and general commercial districts.
The gross floor areas of each building are as follows: the Busan office building 3,777 pyeong and the Choryang Building 446 pyeong; the Daegu office building 1,853 pyeong; the Daejeon office building 3,843 pyeong; and the Gwangju office building 3,466 pyeong.
Each building is currently used by Amorepacific Corporation as an office headquarters, maintaining a top-tier working environment. With prime office–standard ceiling heights and open-plan layouts that allow flexible space configuration, the properties can be used as offices without the need for major refurbishment work.
The Busan office building and the Choryang Building are adjacent to each other, enabling the securing of a large site area, and they are located in a district expected to directly benefit from the relocation of the Ministry of Oceans and Fisheries (MOF) to Busan and from the Busan North Port Redevelopment Project. The Daegu and Daejeon office buildings are expected to see a significant improvement in transportation accessibility with the construction of Daegu Metro Line 4 and Daejeon Metro Line 2, respectively.
Investors can leverage the locational advantages of these properties to consider conversion into uses such as hotels, co-living facilities, senior housing or medical centers. If a buyer or investment firm wishes to pursue such a conversion, the exclusive sales advisor plans to use its network to connect them with specialized operators.
A Savills Korea representative said, “These assets are high-quality office buildings located in core areas of their respective regions, offering stable rental income and a wide range of potential uses,” adding, “They will provide attractive investment opportunities for both domestic and overseas investors.”
Savills Korea has kicked off the sale process in earnest by sending out teaser letters to potential investors. Depending on investor needs, it is possible to acquire specific buildings individually or as a portfolio, which is expected to make it easier to underpin the investment case from the investor’s perspective.
Meanwhile, as the monetization of real estate assets held by corporations has recently been gaining momentum, Savills Korea has been steadily expanding its track record in related sell-side advisory mandates. In addition to marketing services for assets on the market, the firm provides comprehensive services for real assets, including investment and financial advisory for investors, asset management and leasing advisory.


kakim@fnnews.com Kim Kyung-a Reporter