Also to Be Used as a Flagship Store for E-Commerce Brands
Goldman Sachs has acquired the Mercure Ambassador Seoul Hongdae, a four-star hotel and mixed-use commercial facility located in the heart of Hongdae, Seoul.
On July 10, Goldman Sachs announced that its Alternative Investments Division has completed the acquisition through a real estate fund.
The Mercure Ambassador Seoul Hongdae features 270 guest rooms and operates under the Mercure brand of the global hotel chain Accor. Currently, the hotel is managed by Seohan Tourism Development.
The lower floors of the hotel house major domestic retail companies. In the future, this space will be utilized as a flagship store selling private label products from leading e-commerce companies.
Nikhil Reddy, Head of Real Estate for Asia-Pacific at Goldman Sachs Alternative Investments, stated, "This investment marks a milestone for Goldman Sachs, highlighting South Korea as a strategically important real estate investment market." He added, "Given the excellent location and high foot traffic, retail demand is strong, and we believe this will provide long-term value for investors."
Goldman Sachs decided on this investment after considering the high demand in the Hongdae area and changes in consumer trends. This is not the company's first investment in the Hongdae commercial district. Its initial investment, the Scarlett Building, was transformed into a flagship retail asset with high occupancy through building renovations.
For this investment, Goldman Sachs collaborated with Seohan to lease previously vacant retail spaces, extend the hotel lease period, and expand the lease area with the existing anchor retail tenant, the Juzzo fashion brand.
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