CPPIB and GIC to acquire Kumho Asiana Main Tower in Seoul for US $380M

Canada Pension Plan Investment Board (CPPIB) and GIC through a 50-50 joint venture partnership have agreed to acquire Kumho Asiana Main Tower from Kumho Asiana Group, parent of Asiana Airlines, for KRW418 billion or US $380 million.

Kumho Asiana Main Tower, the 29-story building with eight underground floors, is located in the centre of Gwanghwamun, a core office, government and cultural precinct in Seoul’s Central Business District.

The property was sourced and will be managed by DWS (formerly Deutsche Asset Management), one of the world’s leading asset managers.

In March 2018, Kumho Asiana Group announced the signing of a memorandum of understanding (MOU) to sell its headquarters to DWS.

photo credit: Sangwon via foursquare

News Release

CPPIB and GIC Enter into Joint Venture Partnership to Acquire an Office Property in Seoul’s Central Business District

Toronto, Canada/Singapore (May 9, 2018) – Canada Pension Plan Investment Board (“CPPIB”) and GIC have entered into a joint venture partnership to acquire a Grade A office building in Seoul, Kumho Asiana Main Tower, from Kumho Asiana Group, parent of Asiana Airlines, for KRW418 billion (US$380 million).

Following this transaction, CPPIB and GIC will each own a 50% stake in this landmark property, which is located in the centre of Gwanghwamun, a core office, government and cultural precinct in Seoul’s Central Business District, offering good access to Gwanghwamun Station, a key public transport hub. Due to its prime location, surrounding amenities and historical and cultural importance, the Gwanghwamun district is favoured by both local and multinational tenants.

Jimmy Phua, Managing Director and Head of Real Estate Asia, CPPIB, said, “The opportunity to invest in one of the largest office markets in Asia through this prime office building fits well with CPPIB’s strategy to invest in top-tier, well-located real estate. In addition, this investment reflects CPPIB’s desire to increase our investments in the Asia Pacific region, and we’re pleased to do so alongside GIC, one of CPPIB’s long-standing partners.”

The property was sourced and will be managed by DWS (formerly Deutsche Asset Management), one of the world’s leading asset managers. With 49 billion euro in global real estate assets under management (as of 31 December 2017), DWS has a 45-year track record in managing real estate assets.

Lee Kok Sun, Chief Investment Officer, GIC Real Estate, said, “GIC has been investing in South Korea since the late 1990s. This investment reflects our confidence in South Korea’s continued growth and commitment to identifying attractive opportunities in this market. We believe this high-quality, well-located property will generate resilient returns over the long term, and look forward to working with CPPIB and DWS to enhance the value of this asset.”

About CPPIB

Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 20 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, São Paulo and Sydney, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2017, the CPP Fund totalled C$337.1 billion. For more information about CPPIB, please visit www.cppib.com or follow us on LinkedIn, Facebook or Twitter.

About GIC

GIC is a leading global investment firm established in 1981 to manage Singapore’s foreign reserves. A disciplined long-term value investor, GIC is uniquely positioned for investments across a wide range of asset classes, including equities, fixed income, private equity, real estate and infrastructure. In private equity, GIC invests through funds as well as directly in companies, partnering with its fund managers and management teams to help world class businesses achieve their objectives. GIC has investments in over 40 countries and has been investing in emerging markets for more than two decades. Headquartered in Singapore, GIC employs over 1,400 people across 10 offices in key financial cities worldwide. For more information about GIC, please visit www.gic.com.sg.

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Canada Pension Plan Investment Board

CPPIB Media Relations
media@cppib.com

Mei Mavin
Director, Global Corporate Communications
T: +44 203 205 3406
mmavin@cppib.com

GIC

Ms Mah Lay Choon
Senior Vice President, Communications
DID: +65 6889 6841
mahlaychoon@gic.com.sg

Ms Tess Chia
Vide President, Communications
DID: +65 6889 8653
tesschia@gic.com.sg

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.