'DTOWER Hyoje' Sale Gets Underway as DL Group Selects CBRE Korea as Advisor [fn Market Watch]

[Financial News]  DL Group is stepping up efforts to sell 'DTOWER Hyoje' in Jongno District, Seoul. After deciding to pre-sell the property before completion, the group selected CBRE Korea as its sales advisor and finalized the schedule for bidding and preferred bidder selection. Bidding is scheduled for November, followed by preferred bidder selection in December, with closing targeted for March 2027. The sale has effectively moved from the review stage to execution aimed at finding a buyer.
According to investment banking (IB) industry sources on the 28th, Hyoje PFV selected CBRE Korea as the sales advisor for the provisionally named 'DTOWER Hyoje.'
DL E&C's private-sector projects team and Hana Asset Trust's REITs business division are handling the practical work.
DTOWER Hyoje is an office complex comprising two buildings with seven basement levels and 15 above-ground floors in and around 98 Hyoje-dong, Jongno District, Seoul. It has a site area of 6,833.80 square meters and a gross floor area of 89,918.58 square meters. Completion is scheduled for June next year.
Hyoje PFV is a special-purpose vehicle in which DL E&C invested in 2020 and secured a 66% stake. Hana Asset Trust currently owns 20%, while Samsung Securities holds 14%. Dongryung Siaeop, whose largest shareholder is Jo Hyeon-mun, the former Hyosung vice president and second son of Hyosung Group, was the counterparty. The transaction was valued at 207.3 billion won at the time.
The project was initially planned as an officetel development with more than 800 units, but it was redirected toward office development as profitability deteriorated. Financing costs also mounted during the delays. Cumulative financing costs since October 2020 have reached 99.9 billion won, while DL E&C's funding support limit has risen to 585 billion won. After partial repayment, the loan balance stood at 93 billion won at the end of the first quarter of this year. The outstanding project-finance loan balance was 440 billion won over the same period. SC Bank Korea is participating with 93.3 billion won; the National Credit Union Federation of Korea (NACUFOK) and 30 local credit unions with 98 billion won; and Lotte Capital and KB Insurance with 65.3 billion won each.
With the selection of the advisor, market attention is expected to shift to the prospective buyer pool and pricing. Although office supply in Seoul's central business district (CBD) is set to expand, institutional demand for newly built assets in prime locations remains strong. At the same time, rising vacancy rates for Class A offices are prompting investors to take a more selective, asset-by-asset approach.
For DTOWER Hyoje, the master lease terms, lease structure and pace of stabilization after completion are expected to determine the price. Since closing is targeted for March next year, roughly three months before completion, whether the pre-sale can be completed as planned will be a key point to watch.
A real estate IB industry source noted, "With the schedule from bidding through closing taking concrete shape alongside the selection of an advisor, the sale of DTOWER Hyoje has entered the full-fledged execution phase. How prospective buyers assess investment demand for new CBD offices and rental stability will determine the price."

[email protected] Kang Gu-gwi Reporter