[THE INVESTOR] A consortium led by US private equity giant Kolberg Kravis Roberts has been named the preferred bidder to acquire Centropolis, 26-story twin tower buildings in central Seoul, according to industry sources on April 2.
The purchasing price is expected to exceed 1 trillion won (US$923 million) or 26 million won per 3.3 square meters, outpacing last year’s two big deals -- KEB Hana Bank headquarters worth 910 billion won and Signature Tower worth 700 billion won.
The Centropolis twin towers in central Seoul
Samsung nears deal to acquire Seoul building for record price
KKR joined hands with Korean asset management firm IGIS for the deal. Blackstone, Millinium Inmark and Prudential affiliate M&G Real Estate also competed to the end.
The mega deal comes after KKR, along with Hong Kong-based LIM Advisors, earned a profit of almost 200 billion won in their sale of K-Twin Tower, 22-story twin buildings in the city center, for 710 billion won to Samsung SRA Asset Management, a property unit of Samsung Life, in December. Samsung paid 28.1 million won per 3.3 square meters -- the priciest per unit area for a commercial building in Korea.
By Lee Ji-yoon (firstname.lastname@example.org)