117 York Street, South Melbourne
117 York Street, South Melbourne, VIC, 3205, AU
318 sm
The consortium of Jones Lang LaSalle (JLL) and Cushman & Wakefield (C&W) (hereinafter referred to as "the Advisors") has been appointed as the exclusive sales advisor by KORAMCO Value-Added Real Estate Fund No. 2-1 REIT, the owner of K-Square Gangnam II located at 374 Gangnam-daero, Gangnam-gu, Seoul (hereinafter referred to as "the Asset"), to proceed with the sale of the Asset.
The Asset is an office and retail facility with a total floor area of 21,942m² (6,638 pyeong), comprising 4 basement levels and 20 floors above ground. Situated on Gangnam-daero and in close proximity to Gangnam Station, the Asset boasts excellent accessibility to major areas of Seoul and the metropolitan region via public transportation and main roads. Its location on a major thoroughfare provides outstanding visibility and exposure. Notably, the lower floors, designed with high ceilings, offer a flexible option for potential conversion between office and retail use, depending on market conditions. As of the distribution date of this document, the Asset maintains a stable 100% occupancy rate and presents opportunities for improved profitability through lease structure enhancements reflecting future market conditions.
Prospective buyers of the Asset are requested to submit a Letter of Intent (LOI) and other required documents to a location to be designated by the seller and the Advisors. Detailed instructions regarding the submission of the LOI will be provided in a separate bid guideline document to be issued at a later date. For any inquiries, please contact JLL or C&W.
The Asset is an office building completed in 2022 with a total floor area of 6,638 pyeong (21,942m2), featuring state-of-the-art physical specifications rarely seen in the Gangnam area. Located at the intersection of Gangnam-daero and Teheran-ro at Gangnam Station intersection, it offers excellent visibility and exposure, providing high promotional effects for both vehicular and pedestrian traffic.
As of June 2024, the office space has a Weighted Average Lease Expiry (WALE) of 3.0 years, which reduces to 2.1 years when considering mutual early termination options. The potential large vacant spaces that may occur upon lease expirations are highly sought after by premium potential tenants, thus lowering the risk of future vacancies. In addition to its robust leasing status, the Asset possesses significant value-add potential through improved lease terms reflecting future market conditions.
The lower floors of the Asset (B2 to 4F) have ceiling heights ranging from 5.2m to 6.0m, providing hardware that allows for interchangeability between retail and office use. Based on the enduring importance of location value, independent of market volatility, the Asset's exceptional locational value offers the potential to maximize returns by flexibly responding to changing office and retail market environments.