SINGAPORE-based real estate investment company Pacific Star Group yesterday launched an international mall in Seoul – its first venture in South Korea.
Pacific Star bought the Noon Square mall with co-investor Woori Bank in November 2007 for more than US$200 million. Pacific Star’s stake of US$187 million was acquired through its Asia Real Estate Income Fund (Areif). The 1.2 billion euro (S$2.5 billion) fund invests in prime commercial and residential property in Asian gateway cities.
The nine-storey Noon Square, in Seoul’s Myeondong district, has net lettable space of 15,667 sq m. It is in the heart of the city’s prime shopping district, which draws local pedestrian traffic of 500,000 to 700,000 a day. The area also attracts some six million tourist shoppers a year.
Known as Avatar Mall before its relaunch as Noon Square, the 40-year-old property was an under-performing asset for several decades, said Pacific Star. Under Pacific Star, with local asset manager Koramco, the property was given a US$23 million makeover and an extensive rebranding effort to unlock value.
Frank-Rainer Vaessen, president of Pacific Star Fund Management and chairman of Areif, said that the company is on the lookout for more assets in South Korea as the economy there recovers. Acquisitions could be made through the Areif or one of the other funds managed by the group, he said.
Source : Business Times – 28 Aug 2009
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