Sillim-dong Podomall Sold to Koramco for 220 Billion Won

[Asia Economy Reporter Onyu Lim] 'Podomall,' a landmark shopping mall in Sillim-dong, Gwanak-gu, Seoul, has been sold to Koramco Asset Trust for approximately 220 billion KRW.

According to Cushman & Wakefield Korea, the sales agent for Podomall, the mall owned by the German private equity firm DWS Asset Management was successfully sold to Koramco Asset Trust for 220 billion KRW on the 11th.

Koramco Asset Trust established Koramco Value Investment Real Estate No. 3-1 Trustee Manager Real Estate Investment Company (hereinafter 'Koramco Blind 3-1') to complete the acquisition of Podomall. Koramco Blind 3-1 is the first subsidiary REIT of the 400 billion KRW-level Blind Fund No. 3, which was formed in April through investments from institutional investors such as the Teachers' Pension, Government Employees Pension, NongHyup Central Association, Police Mutual Aid Association, and Military Mutual Aid Association.

Completed in 2009, Podomall is a complex shopping mall spanning from basement level 8 to the 15th floor, with a total floor area of 37,759㎡. It consists of 123 tenants suitable for the young generation in their 20s and 30s and the surrounding residential demand, with an occupancy rate reaching 98%. DWS Asset Management selected Cushman & Wakefield as the asset management company and has been conducting extensive MD improvements.

Youngguk Son, Executive Director of the Investment Advisory Team at Cushman & Wakefield, said, "This sale is significant as a major retail asset transaction carried out under the challenging domestic and international conditions caused by the COVID-19 pandemic," adding, "The current operation status and valuation of retail assets are at their lowest point, but a rebound is expected in the future, so it is a time when active exploration of investments in undervalued hotels and complex commercial facilities should be pursued."