IGIS Buys Seoul Office Building From KTB Asset for $316 MillionPooja Thakur
IGIS Asset Management Co. bought the Twin Tree Towers in Seoul for $316 million from KTB Asset Management Co., making it the second-largest transaction in the South Korean capital in the first half, according to the seller.
Savills Plc, which brokered the deal and made the announcement on behalf of KTB Asset, said it will offer to find new companies to lease space if the largest tenant moves out of the three-year-old prime office building, according to an e-mailed statement today.
South Korea’s worst property-mark slowdown since 2004 threatens to limit the economy’s rebound and the government’s stop-go policies to stimulate the housing market have failed to secure any sustained revival. Injecting life into the real-estate market was a key goal for President Park Geun Hye when she took office in February, introducing tax breaks on April 1 to spur demand and supply-control measures to support prices.
Seoul prime office buildings posted a 1.2 percent rental increase in the June quarter from a year ago while prime office vacancy rose 1 percentage point to 10.7 percent, according to a separate Savills report.