[THE INVESTOR] NH Investment & Securities is set to invest 700 billion won (US$599.5 million) in Yeouido’s Parc One multiple complex, according to sources familiar with the issue on July 11.
The firm recently reached an agreement with property developer Y22 Development Co. to buy a 56-story office building -- one of the four buildings to be built within the complex.
A bird's eye view of Parc One multiple complex
NH Investment & Securities will dip into its own coffers for 200 billion won of the amount, while the rest will be funded by pension funds, asset managers and its own affiliates.
NH said that instead of moving in, it would resell the building for bigger gains.
Once construction is completed in 2020, the 277-meter building will stand as the third tallest in Yeouido. Currently, the tallest is Office Tower I, followed by International Finance Center Seoul. These two buildings were financed by AIG Group, which put IFC on the selling block this year.
The Parc One development project -- estimated to cost around 2.5 trillion won -- was initiated in 2007. But it was stalled since 2010 due to a lawsuit between the property-owner, Unification Church and Y22 Development.
The suit was settled in 2014, with the court ruling in favor of the developer. Y22 had sought to sell the buildings prior to its completion, but the Unification Church had rejected the idea, saying it was a violation of their contract.
By Park Yuna (
yunapark@heraldcorp.com)