Deka Immobilien sells office building in South Korea (DE/KR)

Deka Immobilien GmbH has sold the office building 'Myeongdong Central Building' in Seoul for the equivalent of approx. €58 million. The asset was held by the open-ended mutual property fund, Deka-ImmobilienGlobal.

The purchaser is a REIT established by the Korean asset manager 'JR AMC'. The sale price is above the current market value of €55.6 million. Deka Immobilien purchased the building for approx. €46.6 million in 2005. The property, which was completed in 2002, is centrally located in the central business district of Seoul and features a total net lettable area of 19,500 m².

With this sale the Asian-pacific component of the real estate assets of Deka-ImmobilienGlobal is reduced from 36% to 34 %. This currently high component is due to the dynamic development in this region. The cycle of the real estate market in Seoul is experiencing a phase, whereby investor demand exceeds the availability of real estate. The sale is thus an example for the anti-cyclic transaction strategy of the fund. Since the sale of an object in South Korea in 2010, Deka-ImmobilienGlobal now owns no further properties on the Korean peninsula. However, the area remains a target investment country for the fund also in future.

Source: DekaBank

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