Aegis Asset Management Achieves 100% Effective Occupancy Rate for Twin Tree Tower

Aegis Asset Management announced on the 1st that it has achieved an effective occupancy rate of 100% for Gwanghwamun Twin Tree Tower. This building is an asset incorporated into Aegis Value Plus REIT and is expected to contribute to enhancing the dividend stability of the REIT.

Twin Tree Tower is an office building located at 6 Yulgok-ro, Jongno-gu, Seoul, with 8 basement floors and 17 above-ground floors, totaling a gross floor area of 55,785㎡. It was designed by architect Jo Byung-soo, the general director of the 4th Seoul Urban Architecture Biennale to be held this fall. The building offers views of Gyeongbokgung Palace and features an elegant exterior symbolizing the base of an old tree.

The vacancy rate of Twin Tree Tower reached 21% in December 2021 when Aegis Value REIT signed the purchase agreement (MOU), but through active recruitment of new tenants, it decreased to 5.6% in December last year when it was incorporated. Subsequently, due to existing tenants expanding their leased spaces, the effective vacancy rate dropped to 0%.

A representative of Aegis Value REIT explained, “Since deciding to incorporate the asset, we have improved the building’s location and physical standards to increase tenant demand. In addition to Twin Tree Tower, we will strive to enhance the value of the underlying assets to return profits to investors.”

In fact, although Twin Tree Tower is a newly built office constructed in 2010, additional space improvements were made through approximately KRW 10 billion in capital expenditures (CAPEX). Improvements to the lobby, elevators, convenience facilities, and energy-saving systems were completed in July, enhancing tenant satisfaction and the sustainability level of the asset. As a result, Twin Tree Tower became the first office among domestically listed REITs to obtain the LEED Platinum certification.

In terms of location, among prime-grade (gross floor area over 33,000㎡) offices in Seoul’s central business district (CBD), it is differentiated by securing permanent views adjacent to Gwanghwamun, Gyeongbokgung Palace, and the Blue House. Furthermore, with the Songhyeon-dong site opened as Songhyeon Green Plaza in October after 110 years, a large green space has been established directly across from the building.

Aegis Asset Management stated, “The Songhyeon-dong site is included in Seoul City’s ‘Garden City Seoul’ plan, and the Lee Kun-hee Museum of Art is scheduled to be built on the Songhyeon-dong site in 2027, which is expected to improve the surrounding environment and infrastructure of Twin Tree Tower. We will enhance Twin Tree Tower’s distinctive tenant competitiveness within the central business district (CBD) through the formation of a cultural and artistic zone centered on the Songhyeon-dong site and the Lee Kun-hee Museum of Art.”