D Tower Donuimun sale marks year's second largest commercial property transaction

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D Tower Donuimun sale marks year's second largest commercial property transaction

Published: 15 Nov. 2024, 13:35

D Tower Donuimun [DL]

D Tower Donuimun, currently used as DL Group’s headquarters, was sold for 900 billion won ($642 million), marking the second-largest commercial real estate transaction of the year.

The asset manager Master Asset Management finalized the sale of the tower to NH REITs for 895.3 billion won, according to DL on Friday, five months after NH REITs was selected as the preferred bidder in July.

This transaction ranks as the second-largest commercial property sale of the year, trailing the Samsung Fire & Marine Insurance building The Asset, which sold for 1.142 trillion won.

Located near Seodaemun station in western Seoul, D Tower Donuimun is an office building spanning a total floor space of 86,224 square meters (928,107 square feet), with 33 floors — 26 above ground and 7 underground.

Master Asset Management initially acquired the building with funding of 660 billion won in 2020. DL was one of the main investors.

This transaction generated a profit of some 240 billion won for the management company over four years. DL will receive about 130 billion won from the sale, surpassing its third-quarter profit of 121.4 billion won.

“This marks a meaningful achievement for us in developing, preoccupying and managing the outstanding real estate and sale successfully,” said a DL official. “Our cash flow has become stronger amid economic uncertainty, thanks to efficient asset management.”

BY WOO JI-WON [[email protected]]