Mirae Asset Global Investments weighs sale of State Tower Namsan after 7 years

Mirae Asset Global Investments is moving to sell State Tower Namsan, a prime office building in Seoul's central business district, roughly seven years after acquiring it.

The asset manager has recently been reviewing a potential sale of the property, according to investment banking industry sources.

The process remains at an early stage, with the firm selecting a sale manager from among several real estate advisers. A request for proposal has not yet been distributed.

Mirae Asset Global Investments purchased the building from the Abu Dhabi Investment Authority in April 2019 for 588.6 billion won ($438 million). The transaction price of about 29.12 million won per 3.3 square meters set a record for office deals in Seoul's central business district at the time.

A recovery in the Myeong-dong commercial district and a pickup in real estate transactions at nearby hotels and other properties have lifted the asset's value, creating favorable conditions for the firm to recoup its investment.

Completed in 2011, State Tower Namsan is a flagship prime office building in the Myeong-dong and Hoehyeon area, located on Toegyero in Jung-gu, Seoul. The building has six below-ground floors and 24 above-ground floors, with a total floor area of 66,799 square meters.

Situated between Myeong-dong Station and Hoehyeon Station on subway Line 4, the building counts Korea Investment Corporation, global consulting firm Bain & Company, Pfizer Korea and BMW Korea among its major tenants.

The future of Korea Investment Corporation, one of the building's anchor tenants, is a key variable in the sale process. Its potential relocation has come up amid broader discussions about moving additional public institutions out of Seoul.

Whether a major tenant departs could affect future vacancy rates and rental income, and prospective buyers are expected to monitor the situation closely.