Invesco Real Estate Sells Majestar in Seoul

Invesco Real Estate, the US$91.1 billion global real estate investment business of Invesco Ltd. (NYSE: IVZ), has sold the Seoul office property, Majestar City Tower B in the Gangnam Business District, known as one of Seoul’s major business districts and one of the best performing office markets in the city, to a REIT vehicle managed by Koramco for KRW 520bn (approximately US$385m) 

As part of the wider Majestar City mixed-use development comprising office, retail and residential, Invesco Real Estate acquired Tower B in 2017 for the firm’s dedicated core program in Asia Pacific. The 17-storey tower with a floorplan of over 46,000 sqm was newly built at the time of purchase as a high specification Grade A office, designed with green credentials and energy saving attributes. The property features high ceilings, abundant parking, roof terraces and landscape surroundings with tenant friendly amenities including parks and retail as well as close proximity to Seoul’s busiest subway. 

The location also benefits from being a global workplace innovation hub to attract the most talented workforce, which has aided strong leasing and performance of the asset. 

Ian Schilling, Head of Core Funds, Asia Pacific for Invesco Real Estate, commented on the sale: “Majestar was acquired six years ago and has delivered attractive risk adjusted returns to our investors. As active real estate managers, the selective and well-timed sale of assets to rebalance portfolios and realize embedded value is always a key element of our investment process, and our secular convictions mean we believe now is the right time to divest. The sale price achieved is almost double our original purchase price. We continue to manage a high-quality diversified portfolio with resilient performance, where leasing momentum and embedded value continues to drive performance.” 

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