Korea¡¯s real estate investor JR AMC completes acquisition of Apro Squre in Gangnam

JR Asset Management Company (JR AMC), South Korea¡¯s real estate investor, has completed the purchase of Apro Square, located in the commercial district of Gangnam as home to IT names, at 342 billion won ($269 million).

According to the real estate industry on Wednesday, JR AMIC completed registering as the new owner of Apro Square two months after it was selected as a preferred bidder.

The real estate investor paid 342 billion won ($269.4 million) for the purchase and related costs, by raising a fund worth 127.1 billion won through private placement.

The building¡¯s former owner Mastern Investment Management earned 100 billion won from the sale. It bought the building for 204 billion won in March 2019 through its real estate fund participated by large public funds including the National Pension Service and the Military Mutual Aid Association.

The building with five floors below the ground and 15 above was constructed in 2011, relatively young on the block. Its location is convenient for transportation as subway lines are reachable within minutes of a walk.

The new owner can expect stable rental income given that current tenants, Doosan Enerbility and WeWork hold 43 percent and 37 percent of the total space and its adjacent area boasts the lowest vacancy rate. The investor plans to raise the value of the building after raising rental fees reflecting market prices and IT firms¡¯ preference for the area.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]