GIC resumes Seoul Finance Center sale in major Korean property deal

Singapore’s sovereign wealth fund GIC is resuming the sale of Seoul Finance Center, a landmark office tower in Seoul's central business district (CBD), in what could become South Korea’s largest property transaction this year.

GIC has recently issued requests for proposal to global real estate advisory firms, including CBRE, to select a lead manager for the sale, according to investment banking sources on Tuesday.

Korean real estate firms were not invited to bid, said the sources.

In December, GIC indefinitely suspended the sale amid political uncertainty in South Korea following the aborted martial law decree by former President Yoon Suk Yeol earlier that month.

The process was also halted due to lower-than-expected bid prices.

GIC conducted two rounds of tender late last year to secure higher offers for the asset, but none met its valuation target.

The sovereign wealth fund had sought over 1.5 trillion won ($1.1 billion) for the property, equivalent to 40 million won per 3.3 square meters.

However, bidders, including Koramco Asset Management and BentallGreenOak (BGO), had offered about 33 million won per 3.3 square meters.

In 2000, GIC acquired the iconic building for 350 billion won in the wake of the 1997-98 Asian financial crisis.

It is now revisiting the sale amid signs of a rebound in Seoul's office market.

In April, the Crescendo Building in Seoul's CBD was sold to Koramco at 33.66 million won per 3.3 square meters. It is fully occupied by Kim & Chang, the largest law firm in Korea.

Centre Point Gwanghwamun, located behind Sejong Central Center in the CBD, is poised to be sold at the mid-to-high-30 million won range per 3.3 square meters.

Seoul Finance Center spans from eight basement levels to 30 floors above ground with a total floor area of 119,646 square meters.

The property houses the SFC Mall in its lower levels, while upper floors accommodate embassies, financial institutions and major corporations. It offers direct pedestrian access to several subway stations, such as Gwanghwamun Station and nearby City Hall Station.

Since the purchase of the SFC, GIC has acquired adjacent properties: The Exchange Seoul Mall, Premier Place and the NIA Building.

It had sought to integrate all four buildings via a large-scale underground development. However, the project was ultimately scrapped due to regulations.

In 2024, GIC sold the Exchange Seoul Mall to a consortium between Koramco and CTCore, a Korean property developer. Early this year, it kicked off the sale of Premier Place by appointing its sale manager.

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

Yeonhee Kim edited this article.