Deka Immobilien GmbH has sold the fully let office property Eugene Investment & Securities Building in Seoul, South Korea for around 123 million. The closing of the transaction took place on May 31, 2010. The building has been acquired by the Korean Public Officials Benefit Association (CEO Ki Chan KOO), a semi-governmental fund company which manages the pension funds of civil servants.
Located in the city's Yoido business district, the property has been held in the portfolio of the Deka-ImmobilienGlobal open-ended mutual property fund since September 2004. With an investment volume of almost 70 million in 2004, the price now achieved on the sale was around 30% higher than the current appraised value of approximately 95 million.
Thomas Schmengler, Managing Director of Deka Immobilien GmbH, explained that "after uncertainty in the capital markets last year facilitated the exploitation of investment opportunities, the recovery already evident in some markets can now be used to realise sales at a profit." The total floor space of the property of around 40,000 m² is let almost entirely to Eugene Investment & Securities on the basis of a long-term agreement.
The sale of the property forms part of active portfolio management. In addition to the successful disposal of properties at a convenient moment, this includes acquiring properties of first-class quality in prime locations and value-enhancing property management.
The DekaBank Group is the largest provider of open-ended property funds in Germany. The two capital investment companies, Deka Immobilien Investment GmbH and WestInvest Gesellschaft für Investmentfonds mbH, together manage fund assets of over 21 billion. As a sister company, Deka Immobilien GmbH is responsible for the acquisition and disposal of properties, management of these assets and all other property services as well as for product development. Together with the Real Estate Lending Unit of DekaBank, the three companies form the Group's Asset Management Property business division (AMI).
Source: Deka Immobilien GmbH