Koh Brothers makes first entry into Korea by acquiring prime asset
Koh Brothers Group Limited, a well-established construction, property development and specialist engineering solutions provider, announced its maiden entry into the Korean real estate market, jointly acquiring a freehold site in the heart of the famed Gangnam-gu district for KRW95.8 billion (~S$119.0 million).
The existing building purchased from the YMCA has a gross floor area of 17,798.5 square metres and sits on a land area of 4,610.9 sqm. The asset was acquired through a 45%-owned joint venture.
Mr. Francis Koh, Managing Director and Group CEO of Koh Brothers, commented, “Having established a strong niche in themed lifestyle developments in Singapore, we are pleased to have captured a rare opportunity to export our proven model overseas and diversify our asset portfolio.
“We see a great opportunity to enhance the yield of a prime asset in Seoul’s central business district, with the commercial units to provide a stable source of recurring income. We look forward to working closely with our partners to maximise the project’s potential.”
The JV plans to redevelop the YMCA building into an 18-storey (including 5-storey basement) mixed-use development consisting 380 high-end residential units and 2,700 square metres of retail space. The property is strategically located along the main commercial belt in Gangnam, surrounded by MTR stations within a 500-metre radius.
“We have identified, and seek to address, a demand gap for centrally-located and compact residential units for single professionals, double-income families without kids, and real estate investors. We are excited at the prospect of creating a unique and clearly-differentiated product, like we’ve successfully done so in Singapore, for the Korean upscale market,” added Mr. Koh.
Redevelopment is expected to commence in 2Q2018 and complete in 2020.