Canada Pension Plan Investment Board (CPPIB) announced that it has acquired a 50 per cent interest in the Samsung SRA Private Real Estate Investment Trust No. 4, a single asset fund which owns a high-quality Grade A office development property in Seoul, South Korea. CPPIB’s equity commitment for its interest will be KRW 126 billion (C$118.6 million).
Located at 7-13 Sincheon-Dong in Jamsil, a growing sub-market near the Gangnam Business District in Seoul, the development property is 100 per cent pre-leased by Samsung SDS, South Korea’s largest IT services company. The property will serve as Samsung SDS’ headquarters and completion is scheduled for May 2014.
“This transaction represents our first real estate investment in South Korea and is an excellent opportunity to invest in a high-quality, newly-constructed building in an increasingly popular office sub-market with a blue chip tenant,” said Graeme Eadie, senior vice-president and Head of Real Estate Investments, CPPIB.
When completed, the office property will comprise 30 floors with a gross leasable area of approximately 1.1 million square feet, including underground parking.
“We see this investment as an attractive entry point into the Korean market,” said Eadie. “As Asia’s fourth largest economy, South Korea is a key market with stable long-term growth prospects.”