Shinsegae Participates in IFC Acquisition Final Bidding... Aiming for Yeouido Landmark

Aegis Asset Management Consortium, Yeouido Downtown Large Starfield and Chosun Hotel Value Up
4 Trillion Won Big Deal... "Comprehensive Review of Financing Ability, Investment History, etc."

Yeouido IFC.

[Asia Economy Reporter Yuri Kim] Shinsegae Group has participated in the bidding for the International Finance Center (IFC) in Yeouido, Seoul, valued at around 4 trillion won.

According to the investment banking (IB) industry on the 14th, Shinsegae joined the second round of the IFC sale bidding along with Aegis Asset Management. Shinsegae participated as a financial investor (LP) in the consortium managed by Aegis Asset Management through Shinsegae Property, which operates Starfield.

The sale's lead manager, Eastdil Secured, held the main bidding by 5 p.m. for the shortlisted qualified bidders, including Aegis Asset Management-Shinsegae, Marston Investment Management, ARA Korea, Koramco Asset Trust, Mirae Asset Maps, and Midas Asset Management. The sale target includes four IFC buildings and the IFC Mall in Yeouido, owned by Canadian Brookfield Asset Management, covering an area of 85,400㎡. The buildings also include the Conrad Hotel, a luxury brand of the global hotel chain Hilton.

Previously, in 2016, Brookfield Asset Management acquired the IFC from the AIG Group for 2.55 trillion won. The current acquisition price is expected to exceed 4 trillion won. The near-zero vacancy rate of the buildings and their location at the center of one of Seoul's three major commercial districts, with a daily floating population of 300,000, have attracted significant interest from domestic and international investors.

Shinsegae is believed to value not only the profitability but also the brand value by establishing Starfield (shopping mall) and Chosun Hotel & Resort (hotel) in the prime location of Yeouido. Industry experts expect that reopening the IFC Mall as a large-scale Starfield in the city center will attract not only Yeouido office workers but also demand from the MZ generation (Millennials + Generation Z). This was demonstrated by 'The Hyundai Seoul,' which opened in Park One across the street in February last year. The Conrad Seoul Hotel can be operated under the Chosun Hotel & Resort brand.

Shinsegae Property acquired a 25% stake in the fund of Aegis Asset Management, which owns Centerfield near Yeoksam Station in Gangnam, the site of the former Renaissance Hotel, for 360 billion won last year. Previously, in 2017, it acquired COEX Mall and reopened it as COEX Starfield. The Yeouido IFC investment is expected to follow a similar approach.

The financial investment industry expects that due to the large scale of this bidding, the final acquisition candidate will be determined comprehensively based on not only price but also financing capability. In the first round of bidding, a valuation of 4.3 trillion won was proposed. An industry insider said, "Because this is such a significant deal, financing capability and investment history will be comprehensively reflected in the final selection of the acquirer."

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