Mullae-dong Office 'Young City' Sold for 550 Billion Won

[Asia Economy Reporter Onyu Lim] The office building 'Young City' in Mullae-dong, Yeongdeungpo-gu, Seoul, has been sold for 550 billion KRW.

Cushman & Wakefield announced on the 22nd that it successfully sold Young City, owned by the UK-based private equity firm Actis, to a consortium of D&D Investment and NH Investment & Securities.

The transaction was completed at a price in the mid-18 million KRW range per 3.3㎡, significantly exceeding the market's initial expectation of 17 million KRW per 3.3㎡. A Cushman & Wakefield representative stated, "Through this sale, Actis is expected to realize a pre-tax capital gain of approximately 280 billion KRW."

Young City is the first prime office in Mullae-dong, located between Yeongdeungpo Station on Seoul Subway Line 1 and Mullae Station on Line 2. It consists of two twin buildings with 5 basement floors and 13 above-ground floors, totaling a gross floor area of 99,140㎡. It was developed by Fountain Valley Project Finance Company (PFV), which purchased the land for 64 billion KRW in 2015.

After selecting Cushman & Wakefield as the exclusive sales agent in September last year, Young City revised its strategy to stabilize assets before sale, attracting stable tenants such as Citibank Korea and SK Telecom. At the beginning of this year, Young City's lease contract rate stabilized at approximately 97%.

By resolving vacancy issues, investor interest in Young City naturally increased. Its value rose significantly, and despite the sale process taking place during the COVID-19 pandemic, 18 potential investors participated in the bidding, making it a successful transaction.

This content was produced with the assistance of AI translation services.