'ONE Brothers' Enter Magok and Yeouido... Empty Spaces Turn into Hot Spots

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The commercial landscape of southwestern Seoul is rapidly being reshaped, with Aegis Asset Management's "ONE Brothers" at the center of this transformation. Following the complete sell-out of retail space at Magok's ONE GROVE within just one year of its completion, Yeouido's ONE CENTINEL is now drawing attention as it transforms into a new stage for chefs from "Black and White Chef."

Though their approaches differ, both projects share the same goal. ONE GROVE has adopted a "Build-to-Core" strategy, participating from the development stage, while ONE CENTINEL is utilizing a "Value-Add" strategy to revitalize an existing building. Each is creating a new "hot place" in the southwestern region of Seoul.

In August 2021, Aegis Asset Management and the National Pension Service made a forward purchase investment worth 2.3 trillion won in the Magok CP4 block. After three years of meticulous development, ONE GROVE was completed in September last year and held its grand opening in June this year, quickly becoming the heart of Magok.

With a total floor area of 463,204 square meters (approximately 140,000 pyeong), ONE GROVE aspires to be an urban forest rather than just a building. The 147-meter-long curved LED "Groveway," which crosses a 2,300-pyeong central garden, is located at the entrance route to ONE GROVE, offering visitors visual delight and the comfort of a forest. The emergence of this new space has added the charm of nature to the underground public pedestrian passage connecting Magok Station (Line 5) and Magoknaru Station (Line 9), establishing itself as a must-visit destination.

The retail space was diversified during development by segmenting the MD area from 80 to 110 zones. Anchor tenants such as Traders (5,500 pyeong), Kyobo Bookstore, VIPS, and Uniqlo, as well as popular restaurants like Brooklyn The Burger Joint, Eulji Kkankan, and Dimdimsum, have been brought in. As of this month, the retail occupancy rate has surpassed 95%.

The office sector is also progressing smoothly. All affiliates of DL Group, with about 2,300 employees, are in the final stages of moving in, and over 10 global asset managers, including Greystar, are in the process of occupancy. Companies such as Saramin, Parata Aviation, Air Incheon, and Bumin Hospital Prestige Life Care Magok Clinic have already moved in.

There was a crisis in December 2023 when the construction company Taeyoung Engineering & Construction entered a workout program. However, the National Pension Service did not withdraw its purchase decision, and the lending group injected an additional 370 billion won to normalize the project. Currently, ONE GROVE was purchased at 16.5 million won per 3.3 square meters, but with nearby offices trading at 20 million won per 3.3 square meters, a significant capital gain is anticipated.

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A different kind of transformation is underway in Yeouido. The former Shinhan Investment Tower, acquired for 639.5 billion won in August 2022, has been reborn as ONE CENTINEL after three years. Aegis significantly expanded the retail space by horizontally extending the podium from the basement level one to the third floor above ground. The commercial facilities, previously limited to part of the first floor, have been expanded to four floors, increasing the exclusive area by 1,894 square meters. Two dedicated retail shuttle elevators and new escalators have also been installed to improve accessibility.

The core feature is the differentiated food and beverage lineup. In the basement level one, Chef Kim Byungmook's "Yakitori Mook" and Chef Cho Seohyeong's "Yeouido Fairy," both featured on Netflix's "Black and White Chef," have opened. Star chef Nam Junyoung's "Kibo Rock'n'Roll" is also present. On the second floor, popular restaurants such as Teukbyeolhan Obok Susan, Muan Hoegwan, and Jungang Haejang have moved in, while the third floor houses Seolseong Ranch.

The building's exterior has also undergone a dramatic transformation. A large curved media billboard has been installed, providing strong visibility from three sides of the Yeouido intersection, and the front of the first and second floors has been finished with a glass curtain wall to enhance openness.

ONE CENTINEL is the culmination of Aegis's decade-long value-add expertise in Yeouido. The "Yeouido-style value-add" that began with City Plaza in 2015 achieved an internal rate of return (IRR) of 30% by attracting Sikgaekchon, while O2 Tower saw a 30% increase in net operating income (NOI) after creating O2 Terrace, and was later sold at a then-record price of 24 million won per 3.3 square meters.

Although their approaches differ, ONE GROVE and ONE CENTINEL share the same essence: not just simple real estate development, but accurately reading the needs of the region and users and realizing them in space.

An Aegis Asset Management official stated, "ONE GROVE has created a multi-cultural space for 270,000 residents and 160,000 corporate workers in the emerging Magok area," adding, "ONE CENTINEL has provided a new dining option in the monotonous food scene of Yeouido's financial district." The official further commented, "Both projects are significant in that they have elevated retail from a mere auxiliary facility to a core value of the asset."

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