KTB Asset Management Co announced the successful sale of its Seoul property, the Twin Tree Towers, to IGIS Asset Management Co. The deal, which was valued at USD 316 million, is KTB Asset's second-largest sale in the first half in South Korea's capital. Savills Plc brokered the deal. In an emailed statement to Bloomberg, Savills also said it offered to get new tenants in case the largest occupier of Twin Tree Towers decides to move out. Just three years old, Twin Tree Towers is considered as prime office property.
Since 2004, South Korea has been experiencing a slowdown in the property market which threatened the economy. Reviving the real estate market was one of President Park Geun Hye's goals when she took over in February. To spur demand, she introduced tax breaks and supported prices through supply-control measures.
In a separate report, Savills revealed that there was a 1.2% increase in rentals of Seoul's prime office buildings in the June quarter this year compared to last year. Vacancies for prime offices also rose by a single percentage point to 10.7%.
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