The Chosun Ilbo
28 December 2004
The Government of Singapore Investment Corporation (GIC), announced Tuesday that it has purchased the “Star Tower” located in Yeoksam-dong, Gangnam-gu in southern Seoul, from multinational investmend fund Lone Star.
The buying price was not revealed, but sources estimate that it would be in the range of W850 billion (US$816 million) to W1 trillion. If these estimates are accurate, it would be the largest real-estate deal for a single building in Korea. The details of the contract have not been disclosed.
GIC said in the press release that its affiliate GIC Real Estate Pte Ltd. purchased the Star Tower from Lone Star Fund III. GIC explained that the acquisition was designed in accordance with its investment objective of maintaining a portfolio of long-term assets in Seoul.
GIC refused to reveal at what price they purchased the buidling and made a full payment or will pay in installments.
GIC has US$200 billion (W200 trillion) in funds and has been investing in real estate-related assets all over the world. It first made inroads into Korea in 1999, and now owns seven spacious buildings in Korea, including the Seoul Finance Center in central Seoul. GIC is reportedly planning on increasing its investment in Korea by establishing a branch office here.