Koramco Completes Construction of Magok MICE Prime Office 'Case Square Magok'

Koramco Asset Trust announced on the 24th that 'K-Square Magok,' which Koramco pre-purchased from Magok MICE PFV through Koramco Value Investment Real Estate 3-3 REIT in 2021, has received usage approval from Gangseo District Office. This is the second completion following One Grove in CP4 zone, one of the office buildings comprising Magok MICE.

K-Square Magok is a prime office building located in CP3-2 zone within the Magok Urban Development Project Area in Magok-dong, Gangseo-gu, Seoul, with a total floor area of 160,374㎡ (48,513 pyeong) spanning from 7 basement floors to 12 above-ground floors. It consists of four neat rectangular buildings.

Unlike One Grove, which emphasizes commercial facilities, or Le West City Tower, which highlights culture and conventions, K-Square Magok is specialized as an office building. Approximately 90% of the total area, 141,807㎡ (42,897 pyeong), is office space, with retail limited to parts of the first floor and basement levels. The plan minimizes commercial facilities to allow office tenants to fully enjoy parking and office spaces without interference from outsiders.

K-Square Magok is managed and operated by S&I Corporation, an affiliate of LG Group. Prior to completion, 30% of the leasable area was pre-leased, and it is currently filling leases faster than other offices within Magok MICE.

The relatively high occupancy rate of K-Square Magok compared to nearby office buildings is due to its space design optimized for corporate headquarters demand. The building’s standard floor exclusive area (floor area) is about 1,700㎡ (approximately 500 pyeong), which is the most preferred size for general companies seeking headquarters. It is neither too large nor too small, allowing efficient space planning. Additionally, the ceiling height was constructed at 2.9m to enhance openness, and the symmetrical center core (central elevator hall) design improves office layout flexibility.

Koramco Asset Trust pre-purchased this asset early in development through a blind fund. It has recorded significant appraisal gains based on the appraisal value alone. Koramco Asset Trust supplies K-Square Magok’s rent at about 85% of nearby offices (CP1, CP4). The strategy is to secure stable income through quick leasing rather than prolonged vacancy periods.

Choi Seung-ho, head of asset management at Koramco Asset Trust for K-Square Magok, said, "K-Square Magok is a prime office optimized for headquarters, providing a work environment where tenants can focus on work without interference from outsiders," adding, "Regardless of tenant size, systematic and efficient management by S&I Corporation, an LG Group affiliate, will realize the best headquarters environment."