The fund acquires a high-quality commercial property in Seoul for 440.8 billion KRW

SEOUL, South Korea, 29 August 2024 /PRNewswire/ — CapitaLand Investment Limited (CLI), a global real asset manager, has launched a new value-add office blind pool fund in South Korea with an equity investment of 200 billion KRW⁽¹⁾ (S$194.4 million⁽²⁾). The private fund is a strategic partnership with KB Bank, a subsidiary of the country’s largest financial group, KB Financial Group. CLI holds a sponsor share in the fund in line with the interests of its capital partner. The new fund increases CLI’s geographic presence in South Koreaan important focus market. The company also increased its funds under management (FUM) in the market by 16% to 3.3 billion Singapore dollars.

The fund has acquired an operating commercial property, Golden Towerby an independent third party for 440.8 billion KRW (S$428.5 million). CLI will leverage its expertise in commercial management and will also generate regular fee income as the asset manager of the Golden Tower. The 20-storey building is located in the heart of Seoul’s Gangnam Business District (GBD). Golden Tower is within walking distance of three subway stations – Seolleung, Samseong and Samseong Central – and offers tenants prime views of Seonjeongneung Park, a popular cultural landmark. In addition to offices, the property also offers retail and dining options.

Golden Tower is scheduled to undergo an Asset Enhancement Initiative (AEI) that includes improvements in areas such as the lobby, facade, and mechanical, electrical and plumbing components to improve the energy efficiency of the property. Following the AEI, the property is expected to receive a Leadership in Energy and Environmental Design (LEED) Platinum certification. The AEI is scheduled to begin in late 2024 and be completed by Q3 2025.

Mr. Min Il Sung, CLI’s Head of Korean Capital Markets, said: “CLI has over 20 years of experience in South Korea. By leveraging our extensive market knowledge, deal sourcing capabilities and investment expertise, we have been able to Golden Tower in an off-market deal for our new value-add office fund. Seoul’s The office market remains one of the most stable in Asia with the lowest vacancy rates⁽³⁾. With our value-add strategy and Golden Tower Given its strategic location in the bustling GBD, the country’s top performing office submarket, we are confident of creating long-term value for our partner. The fund marks the first collaboration between CLI and KB Bank. We look forward to strengthening the partnership in the future through additional co-investment and fund opportunities.”

Mister Matthew SonCLI’s Managing Director and Head of Korea, said: “Value-add investment strategies are gaining importance in South Korea⁽⁴⁾ amid persistently high interest rates. Investors are looking for partner organizations like CLI with proven track records, strong asset management and operational expertise across various asset classes and fund strategies. South Korea is a focus market for CLI. We will continue to work with like-minded capital partners to grow our office portfolio as well as other asset classes such as logistics, accommodation and data centers. By leveraging CLI’s investment and operating expertise in one of the Asia largest self-storage companies⁽⁵⁾we also see great potential to expand into the self-storage sector in South Korea. CLI continues to grow our private funds business to generate attractive risk-adjusted returns for our partners.”

CLI’s presence in South Korea

With the new value-add office fund, CLI now manages eight private funds in South KoreaThe Fund’s acquisition of Golden Tower also expands CLI’s portfolio of diversified asset classes, including offices, logistics facilities, accommodation properties and data centers⁽⁶⁾.

In September 2023CLI’s regional core-plus fund CapitaLand Open End Real Estate Fund has acquired a recently completed Class A logistics property in South Korea. The high-quality logistics property Anseong Seongeun Logistics Centre was acquired through an off-market transaction at an attractive price. The property is strategically located in the northwestern region of Anseong, an emerging logistics hub in Gyeonggi Province.

Through CLI’s wholly-owned accommodation division, The Ascott Limited, and its accommodation fund, CapitaLand Ascott Trust, CLI also owns nine serviced residences and hotels with more than 2,400 units in Seoul, BusanCheongju, Incheon and Jeju.

About CapitaLand Investment Limited (www.capitalandinvest.com)

Headquartered and listed in SingaporeCapitaLand Investment Limited (CLI) is a leading global real asset manager with a strong Asia Stop. As with June 30, 2024CLI had S$134 billion of assets under management and S$100 billion Funds under Management (FUM) across six listed real estate investment trusts and business trusts, as well as a number of private real asset vehicles that invest in thematic and tactical strategies. The diversified real estate asset classes include retail, office, accommodation, industrial, logistics, business parks, wellness, self-storage and data centers.

CLI aims to grow its fund management, accommodation and commercial management businesses globally and maintain effective capital management. As the investment management arm of the CapitaLand Group, CLI has access to the development capabilities and investment opportunities of CapitaLand’s development arm.

As a responsible company, CLI puts sustainability at the heart of its actions and is committed to achieving net zero carbon emissions for Scope 1 and 2 by 2050. CLI contributes to the environmental and social well-being of the communities in which it operates by providing long-term economic value to its stakeholders.

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Issued by: CapitaLand Investment Limited (Co. Regn.: 200308451M)

Important NOTE

This announcement and the information contained therein do not constitute, and are not intended to constitute, an offer of investment products to investors or a solicitation of any such offer to investors in any jurisdiction where such offer or solicitation would not be lawful.

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