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.