April 24, 2024

• 

[THE INVESTOR] Savills Korea, local unit of the UK-based real estate firm, on April 10 said it has been selected to manage the sale of Nine Tree Hotel, located in the heart of the shopping district of Myeong-dong, central Seoul. 

While it declined to disclose details, including the estimated price-range and the timeline, industry sources estimate the deal to hover around 60 billion won (US$55.80 million) to 70 billion, due to its prime location and income from stable lease rents. 

Saengbo Real Estate Trust, owner of the business hotel, has put up for sale the hotel’s main 16-story and 15-story annex buildings, which were built in 1968 and 1978, respectively. The buildings, with a combined floor space of 8,278 square meters, were renovated in 2012. 

Other bidders included CBRE Korea, Deloitte Anjin and MatePlus. 

The hotel is operated by Parnas Hotel, GS Retail’s hotel and leasing subsidiary, with a 20-year lease since 2012. 

Given the prime location for tourists and high rate of retail facility -- comprising about 18 percent of the total area -- it is quite attractive for real estate investors. The tenants include cosmetic brands Banila and AHC as also franchises such as Coffee Bean & Tea Leaf and Bonappetite. 

Savills Korea has recently been making headlines, as it was named broker for major deals in Seoul, including Samsung C&T building, Samsung Life Daechi Tower, and brand new Centropolis Tower, which is slated for June debut.

By Ahn Sung-mi (sahn@heraldcorp.com)