Hong Kong – Real estate private equity firm Gaw Capital Partners has announced that it has invested in the office, officetel and retail portions of a twin tower building in Seoul. Located within Seoul’s Yongsan District and CBD, Dongja 8 is Gaw Capital Partners’ second non-Greater China transaction for Gateway Fund IV, the first being Hyatt Regency Osaka. Previously, Gaw Capital Partners acquired five core assets in the US and UK on behalf of behalf of Korean institutional investors through its separate account services.This is the first acquisition Gateway Funds have made in Korea.
Goodwin Gaw, Managing Principal and
co-founder of Gaw Capital Partners said of the acquisition: "We are
excited about our first acquisition in Korea, which is a market we have been eyeing
for years. This is a unique opportunity
to acquire a property in such a bustling and convenient area of Seoul – and one
with such high growth potential.”
The Property is the office, officetel and
retail portions of a twin tower building (“Dongja 8”) located in the Yongsan
district, south end of the CBD area of Seoul. Total gross floor area of the
twin towers is 91,461 sqm (27,667 py) with seven underground floors designated
for retail and carpark, and the Gateway Fund would be acquiring more than 75%
of the floor area. The Property is in close proximity to Seoul Station in a
neighborhood designated for and undergoing significant city redevelopment
plans. Seoul Station is the busiest train station in South Korea and services
an average of 100,000 passengers per day.
According to a recent announcement from South
Korea’s Ministry of Trade, Industry and Energy: "The overall amount of
foreign direct investment in South Korea rose from the same period last year…with
a large growth in direct investment from Europe and Chinese-speaking countries.
FDI pledges from European nations and Chinese-speaking countries, including
Hong Kong and Singapore, spiked 417.6 percent and 295.1 percent on-year,
respectively, to approximately $2.26 billion and $719 million.”
recent years, Gaw Capital Partners has been providing global direct investment
services to strategic Asian institutional investors. Notable transactions
include 333 Market Street in San Francisco in 2010, Three First National Plaza
in Chicago in 2011, Vintners’ Place in London in 2012, Cupertino Gateway in
Silicon Valley in 2013, the Lloyd’s Building in London in 2013 and Waterside
House in Paddington London in 2013. In addition to leading the
acquisition process (including due diligence), Gaw Capital Partners also
provides debt financing advising and asset management in such transactions. Five of the
direct investment transactions were backed by Korean institutional investors.
Gaw Capital Partners has raised equity in
excess of US$3.8 billion since 2005 and currently commands assets of US$ 8.5
billion under management encompassing residential developments, retail centers,
hotels and commercial properties. Gaw Capital Partners was named Asia Firm of
the Year 2013 by Private Equity Real Estate (PERE). PERE also named Gaw Capital
Partners' Chairman and co-founder, Goodwin Gaw, Asia Industry Figure of the
Year 2013. Gaw Capital Partners also received AsianInvestor’s
award for “Best launch: Real Estate (private)” in 2014.