Mastern Asset Management Acquires Kumho Asiana's Former Gwanghwamun Headquarters 'Concordian'

Total Transaction Volume Expected to Reach 680 Billion KRW
Following Pangyo's 'Alpharium Tower', Another Big Catch

[Asia Economy Reporter Kwangho Lee] Maston Investment Management has acquired the Concordian Building in Gwanghwamun, the former headquarters of Kumho Asiana Group.

According to the investment banking (IB) industry on the 9th, recently DWS Asset Management (formerly Deutsche Asset Management) and Maston Investment Management signed a memorandum of understanding (MOU) regarding the sale of the Concordian Building. The deal closing is expected around November.

Maston Investment Management is reported to have offered around 37 million KRW per 3.3㎡. The total transaction size is said to be about 680 billion KRW. Maston plans to raise acquisition funds using blind funds under management.

Previously, the bidding for the sale was narrowed down to a competition among asset management firms holding real estate blind funds, as the Korea Scientists & Engineers Mutual Aid Association and Samsung SRA Asset Management, initially expected to participate, did not join. Maston Investment Management took the lead in mega office investments by surpassing Aegis Asset Management and Koramco Asset Trust.

The Concordian Building was completed in October 2008. It is located near Gwanghwamun Station on Seoul Subway Line 5. It has a total floor area of 60,695㎡, a site area of 3,913㎡, and consists of 8 basement floors and 29 above-ground floors. It is rare for a large office building with a total floor area over 60,000㎡ in the central business district (CBD) to be on the market. Currently, Lotte Card uses it as its headquarters.

The Concordian Building was acquired by DWS Asset Management from Kumho Asiana Group in 2018 for 418 billion KRW. Upon completion of this transaction, a profit of 262.4 billion KRW is expected in four years.

Meanwhile, Maston Investment Management acquired the landmark ‘Alpharium Tower’ in Pangyo, Seongnam, Gyeonggi Province last year for 1.0221 trillion KRW. Following Alpharium Tower, it is evaluated that Maston is consecutively acquiring major properties including the Concordian Building.