Mirae Asset Global Investments Sells Pangyo Tech One Tower, Proving Itself as a Leading Domestic Developer

Mirae Asset Global Investments announced on October 13 that it has completed the sale of the Pangyo Tech One Tower (Alphadom City Block 6-2) for approximately 2 trillion won. With the successful conclusion of the Pangyo project, which began in 2017, Mirae Asset Global Investments has once again proven its capabilities as a leading real estate developer in South Korea.

On September 25, Mirae Asset Global Investments finalized the sale of the Pangyo Tech One Tower to a consortium of KakaoBank and Korea Investment & Securities Asset Management. The sale price was approximately 2 trillion won, with the transaction price per pyeong of gross floor area reaching about 33.2 million won, marking the highest price ever for an office facility in Pangyo. Through this transaction, Mirae Asset Global Investments realized a profit of around 1.12 trillion won, combining distribution income and capital gains. This represents about 2.6 times the fund's initial investment of 430 billion won, with an expected internal rate of return (IRR) of approximately 23%.

This achievement is the result of Mirae Asset Global Investments' early recognition of Pangyo's high potential. In 2017, when promising IT companies were flocking to Pangyo, Mirae Asset Global Investments began full-scale development in the area. Through a real estate fund that raised 860 billion won in equity, the company acquired 7,300 pyeong of land in Alphadom City Blocks 6-1 and 6-2 in a single purchase. It then embarked on the development of a large-scale landmark mixed-use office facility with a total floor area of approximately 110,000 pyeong. At the time, this was the largest single project investment in the country.

Leveraging its expertise gained from developing and operating domestic prime offices and six-star hotels such as Mirae Asset Center One and the Four Seasons Hotel Seoul, Mirae Asset Global Investments was able to achieve cost efficiency. Unlike typical domestic real estate development projects, which are led by developers and construction companies, Mirae Asset Global Investments took the lead in every stage of real estate development, including architectural planning, design and permitting, and construction. Through systematic project cost management and aggressive cost reduction efforts, the company achieved construction costs per pyeong (5.1 million won) that were 15-20% lower than similar projects.

The Pangyo project by Mirae Asset Global Investments secured a strategic position as a hub for future industries with a long-term perspective, and created differentiated products as a developer. By implementing a sophisticated leasing strategy, the company maximized returns and achieved successful results. Following the Pangyo project, Mirae Asset Global Investments is pursuing various subsequent projects.

Adjacent to the Pangyo Tech One Tower, the company is developing a new mixed-use office complex with a total floor area of 110,000 pyeong, aiming for completion by the end of 2027. In Seongsu-dong, Seoul, an innovative office building with a floor area of 70,000 pyeong, which will serve as the headquarters for Krafton, is scheduled for completion in early 2028. The architectural design for the Seongsu project was selected as the first winner of Seoul City's Creative Innovation Design Award.

Choi Changhoon, Vice Chairman of Mirae Asset Global Investments, explained, "Under the investment philosophy of building a space platform for the Fourth Industrial Revolution where creative talent and innovative companies coexist, we led the Pangyo project and were able to construct a landmark that fully leveraged the advantages of its location." He added, "Going forward, Mirae Asset Global Investments will continue to strive to create a sustainable real estate development model that enhances urban value and grows together with investors."

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