The State Oil Fund of Azerbaijan (SOFAZ) has acquired prime office complex, Pine Avenue Tower A in Seoul, South Korea for USD 447 million. The purchase of the property has been realised through a competitive auc-tion process organized by Mirae Asset Management. Buy-side advisory service was provided by Asia Pacific branches of Cushman and Wakefield.
This is the first acquisition by SOFAZ in the Asia Pacific region. Seoul is one of the most attractive investment destinations in Asia providing steady gains across the office sector for many years. It is underpinned by a strong domestic economy and a well-capitalised financial sector.
Pine Avenue Tower A is located in central business district (CBD) of Seoul, a sought after area by leading Korean as well as international tenants. The property was built in 2011 and is one of the very few trophy assets recently completed and available for sale in Seoul CBD area. The property’s Class A specifications posi-tioned it well to cater to the needs of discerning tenants, generating long term value. The gross floor area (GFA) of the property is approximately 65,000 m2. The asset is solely leased to SK E&C, subsidiary of one of the largest conglomerates of South Korea, SK Group, with net operating income of USD 23.4 million per year.
SOFAZ Executive Director, Shahmar Movsumov commented on the latest acquisition: “We have sought in-vestment opportunities in key gateway Asian capitals for over a year and today I am delighted to announce that we have finally made our first acquisition in Seoul. This is a large transaction and shows our belief in the continued strength of major Asian real estate markets which have shown stable returns historically. We will continue to look for similar investment opportunities in Asia Pacific region"