이 기사는 2021년 11월 08일 07:42 thebell 에 표출된 기사입니다.

M&G Real Estate, the asset management arm of Prudential Group, has joined other bidders to acquire a prime office tower in Pangyo Techno Valley near Seoul, as it continues to expand its presence in South Korea.

The London-based investment firm was among bidders that submitted offers for Alpharium Tower on October 21, according to industry sources. CBRE Korea and JLL Korea are managing the sale process.

“M&G is bidding on its own but it may consider teaming up with another investor later if it is selected as a preferred buyer for the tower,” a person familiar with the sale process said.

M&G is a global property investor with assets under management of more than 33.7 billion pounds ($45.5 billion) as of the end of June 2020. It also has a strong presence in South Korea with its notable investments in commercial properties.

Its exit from a 22-story office tower in Gangnam, Seoul, to Koramco REITs & Trust in 2015 generated a gain of more than 100 billion won ($84.3 million). M&G also invested in Lotte Mart’s Daejeon and Jeju branches and Lotte Factory Outlet’s Incheon branch in the same year in partnership with IGIS Asset Management.

The UK firm has been active in the country’s office building market. In 2016 it bid for International Finance Centre Seoul, a prime office tower in the Yeouido financial district, which was ultimately sold to Brookfield Asset Management for 2.5 trillion won.

M&G acquired Centropolis Building in Jongno, central Seoul, alongside other investors including LB Asset Management in 2018 for 1.12 trillion won. The 26-story building’s major tenants include SK C&C, Shinsegae’s ecommerce unit SSG.com and the Seoul office of Swiss bank UBS.

Alpharium Tower comprises two interconnected buildings with a floor area of 123,699 square meters. More than 93% of its leasable area has been occupied by high-quality tenants including Samsung SDS and NCSoft.

With the office building market in Pangyo, often called South Korea’s Silicon Valley, starting to boom, Alpharium Tower is estimated to fetch as much as 1 trillion won. Other bidders in the race include Mastern Investment Management, IGIS Asset Management and Metheus Asset Management. A preferred buyer is expected to be announced in the coming days.

The office tower is owned by Singapore-based ARA Asset Management’s real estate investment trust. Investors in the REIT include Korean Teachers' Credit Union (KTCU), Pine Tree Investment & Management and NongHyup Life Insurance.

KTCU is the largest shareholder in the REIT with a 39.6% stake, with Pine Tree and NongHyup Life each holding a 10.8% stake. ARA owns 10.01% of the REIT. (Reporting by Gyoung-tae Kim)