이 기사는 2020년 01월 23일 08:00 thebell 에 표출된 기사입니다.

South Korea’s National Pension Service (NPS) is likely to close a deal to sell its Orange Center building shortly. The price has been set at 252 billion won.

According to industry sources on January 20, ARA-NPS Real Estate Investment Trust (REIT), the owner of the Orange Center, has signed the contract of sale with NH-Amundi Asset Management. NH-Amundi will pay 252 billion won for the building and the deal will close on the third of February.

ARA-NPS REIT bought the building for 156.5 billion won. The REIT will pocket almost 100 billion of capital gains, simply comparing two prices. Market watchers expected the building to be sold at 230 billion-plus won, but the actual price exceeded the level.

“The sale of the Orange Center went smoothly, attracting keen attention from the beginning of the auction. The process isn’t going fast, because NPS, the largest shareholder of the REIT, has been very cautious in signing the contract,” said a real estate industry source.

A total of 12 companies submitted letter of intent (LOI) in its preliminary bidding which took place on November 7 of 2019. Out of 12, sever were shortlisted, and five companies - NH-Amundi, IGIS Asset Management, Samsung SRA Asset Management, K-REITs Investment Management, Kalon Investment Asset Management - competed in the second bidding which took place a week later.

All five companies offered a takeover price of more than 250 billion won. Kalon offered 265 billion won while Samsung SRA offered 252.3 billion won to acquire the building.

NH-Amundi offered the third highest price, but gained the highest mark as it submitted the investment letter of commitment (77.5 billion won). Also, the firm was the only one who paid deposits (1 billion won). Of the acquisition price of 252 billion won, NH-Amundi will use its own equity capital to finance 40 percent and the remaining 60 percent will be financed through a loan.

The Orange Center, formerly the ING Center, is located in Jung-gu, Seoul. The land was originally owned by Samsung Securities. After the brokerage firm sold the building to M Tower ABS Specialty Company in 2006, the building was completed in January of 2007. ARA-NPS REIT acquired the building in October of the 2007. NPS is the largest shareholder of the REIT, holding an 89.98 percent stake. ARA Real Estate owns the remaining 10.02 percent stake.

NPS and ARA had attempted to sell the building at the end of 2015. The building has a zero vacancy rate, with Orange Life technically being the sold tenant.

(By reporter Ko Jin-young)