이 기사는 2019년 10월 25일 08:00 thebell 에 표출된 기사입니다.

Three competitors are expected to vie for Seoul's Namsan Square building. Lead managers recently drew up a shortlist of contenders.

According to real estate industry sources on October 18, CBRE Korea and Shinyoung Asset, lead managers of the deal, have gone through a bidding process. A total of six contenders participated in the bid and the seller's side almost immediately shortlisted bidders. The three shortlisted candidates include Edn Investment Management, IGIS Asset Management and Korea Real Estate investment & Trust (KOREIT)'s subsidiary KOREIT Asset Management.

Real estate advisors and brokers say KOREIT has been searching for a new office building. As the number of subsidiaries and employees increase, KOREIT reportedly has been seeking more space to gather them together. Thus, there has been speculation that KOREIT Asset Management's participation in the bid is to secure new office building. However, a KOREIT official said that the company participated in the bid for the investment purpose.

KOREIT Asset Management, former MyAsset Investment Management, was acquired by KOREIT in August, 2016. The asset manager has built its reputation for non-performing loan (NPL) investment, purchased many real estates and invested in loan obligations. Real estate industry sees KOREIT's experiences will be useful for the Namsan Square acquisition as a value-add strategy is likely to be needed for the investment. The fact that the asset manager's affiliates can invest in the fund is also its strength.

With the bidding goes smoothly, the National Pension System (NPS) will likely to benefit from it. NPS is the largest shareholder of 'GE NPS No.1 Real Estate Investment Trust (REIT)' which owns Namsan Square. It purchased the land and the building at 310 billion won in 2009.

When the sales process kicked off in early June, the real estate industry estimated the price would be 20 million won per 3.3 square meters. The sales price amounted to 455.2 billion won. However, as major foreign investors join the bidding war, the final transaction price is expected to exceed that level and the NPS's returns will increase accordingly.

The shortlisted Edn Investment Management has set up a consortium with U.S.-based alternative investment manager Angelo Gordon. IGIS Asset Management has formed a consortium with Kohlberg Kravis Roberts (KKR). IGIS reportedly plans to join hands with SK D&D. The South Korean real estate developer is expected to play a role in development and construction process.

(By reporter Kim Gyuoung-tae)