BNK's planned acquisition of Hyundai Motor Securities building falters

The brokerage house, the prime tenant, will likely partner with financial investors to buy the building

Hyundai Motor Securities building in Yeouido (fourth from left), next to BNK Financial Tower
Hyundai Motor Securities building in Yeouido (fourth from left), next to BNK Financial Tower
Kyung-Jin Min 2
Mar 14, 2025 (Gmt+09:00) min@hankyung.com
Real estate

BNK Asset Management Co.'s bid to acquire the Hyundai Motor Securities building in central Seoul has hit a stumbling block as the main tenant, Hyundai Motor Securities Co., has exercised its right of first refusal.

According to investment banking industry sources on Friday, Hyundai Motor Securities officially notified Koramco Asset Management Co., the owner of the building, of its decision to exercise its rights earlier in the day – the final day of notification if Hyundai is interested in the building.

Koramco put the office building on the market late last year.

The bidding process, held last month, attracted over 10 potential buyers. Koramco chose BNK Asset Management, taking into account BNK’s higher bid than the others and the deal closure potential.

Koramco Asset Management building in Yeouido, Seoul (Screenshot captured from its website)
Koramco Asset Management building in Yeouido, Seoul (Screenshot captured from its website)

BNK Asset Management reportedly proposed 29 million won ($19,945) per 3.3 square meters, about 1 million won more than strong contender KB Asset Management Co.

Based on BNK’s offer, the value of the building was estimated to be in the mid-300 billion won ($206 million) range.

HYUNDAI MOTOR SECURITIES MAY PARTNER WITH OTHER INVESTORS

Sources said BNK Financial Group Inc. planned to operate and eventually redevelop the building, possibly integrating it with the adjacent BNK Financial Tower to create a larger “BNK Town.”

Koramco Asset Management building in Yeouido, Seoul (Screenshot captured from its website)
Koramco Asset Management building in Yeouido, Seoul (Screenshot captured from its website)

However, Hyundai Motor Securities' exercise of first refusal rights has put BNK’s acquisition plan on hold.

The brokerage house is said to have exercised the rights to continue to use the building as its headquarters.

Given the significant capital required for the purchase, market watchers said Hyundai Motor Securities will likely partner with financial investors, rather than acquiring the building alone.

KB Asset Management and Eden Asset Management Pty, Ltd, which were among the initial bidders for the building, could join hands with Hyundai Motor Securities to acquire it, sources said.

Completed in 1994, the Hyundai Motor Securities building is a mid-sized office building in the Yeouido Business District (YBD), spanning six basement floors and 20 above-ground floors, with a total floor area of 40,439 square meters.

BNK is a Busan-based financial group
BNK is a Busan-based financial group

Other prime tenants of the property include Shinhan Fund Partners.

Meanwhile, BNK Asset Management recently held a bidding process for the sale of BNK Digital Tower in Gangnam, southern Seoul.

The auction attracted strong interest from investors, including Shinhan REITs Management; Kyobo AIM Asset Management; Koramco Asset Management; and D&O REITs Management, an LG Group affiliate.

Sources said BNK Asset Management planned to use proceeds from the sale of the BNK Digital Tower to finance its acquisition of the Hyundai Motor Securities building.

Write to Kyung-Jin Min at min@hankyung.com

In-Soo Nam edited this article.

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