Gwanghwamun's The K Twin Towers Hits Market at $700M

The K Twin Towers in Seoul's Gwanghwamun district has been put up for sale. The transaction is expected to exceed 1 trillion won ($700 million), with prices cited at up to 40 million won per pyeong.

Samsung SRA Asset Management recently sent out a request for proposal to select a lead manager for the sale, according to investment banking sources on Monday.

The K Twin Towers is a prime office building located in Gwanghwamun's core business district in Junghak-dong, Jongno-gu. The property comprises 16 floors above ground and six basement levels, with a gross floor area of approximately 83,878 square meters.

Located near Gwanghwamun Station, the building offers excellent accessibility. It sits near Line 5 and Line 3's Anguk Station, adjacent to Gyeongbokgung Palace and Sejong Center for the Performing Arts. The property features Korean-style landscaping and an eccentric core design that enables large-scale space utilization and views of Gyeongbokgung Palace.

Market prices are cited at 35 million won to over 40 million won per pyeong, putting the sale price between 900 billion won and 1 trillion won. If bidding intensifies, the price could easily exceed 1 trillion won, according to market observers.

Completed in 2012, The K Twin Towers was acquired in 2014 by U.S. private equity firm Kohlberg Kravis Roberts, Rimco Advisors, and the Korea Teachers' Pension for 500 billion won, or 19.7 million won per pyeong. Samsung SRA Asset Management purchased the property in 2017 for 700 billion won. A sale at 1 trillion won would yield a 300 billion won profit for Samsung SRA after nine years of ownership.

Office prices in Seoul's Central Business District have been rising recently. Shinhan Card, which has initiated sale procedures for Pine Avenue Building A in Euljiro, is reportedly seeking more than 40 million won per pyeong.

Future CBD listings are expected to include Gran Seoul, a landmark office asset near Jonggak Station. Keppel Asset Management's Inno88 and M Plus Asset Management's Tower 107 are also considered potential listings. With the Gran Seoul fund maturing next month, Koramco Asset Management may also initiate a sale.

"The K Twin Towers is an asset invested in by the National Pension Service, so asset managers without NPS commitments are more likely to participate in the bidding," an investment banking source said.