KKR, IGIS and NPS to Acquire Prime Real Estate Asset in Seoul’s Gangnam Business District

SEOUL, South Korea–(BUSINESS WIRE)–KKR, a leading global investment firm, together with IGIS Asset
Management (“IGIS”), the largest real estate fund manager in Korea,
announced today that they have made an investment along with the
National Pension Service of Korea (“NPS”) to acquire a mixed-use real
estate project (the “Asset”) under development in the Gangnam Business
District (“GBD”) in Seoul, South Korea. The project, to be purchased
from a consortium led by local engineering firm Daor E&C, is expected to
cost approximately KRW 2.1 trillion (US$ 1.9 billion) in total,
inclusive of purchase price and further costs to complete. Additional
terms of the transaction were not disclosed.


The Asset is located in the heart of the GBD at the intersection of
Teheran-ro and Eonju-ro on the former Renaissance Hotel site. Currently
under construction, the property will primarily consist of prime grade
office space, amenity retail space and a five-star hotel, with a gross
floor area of 239,188 square meters and net leasable area of 121,707
square meters. A 20-year master lease agreement for the 263-room hotel
has been signed with Shinsegae Chosun, an experienced and best-in-class
hotel operator.

“We are thrilled to be investing in what we believe will be an iconic
property in an excellent location, and to be teaming up with outstanding
partners including IGIS and NPS to do so. We look forward to continue
building on our global real estate platform by making quality real
estate investments in South Korea and throughout Asia Pacific more
broadly,” said John Pattar, Member & Head of Real Estate Asia at KKR.

“We are excited to make this investment along with world-class
investment firms KKR and NPS. We expect to develop the property not just
as the best real estate asset in South Korea, but also as a landmark
building in the global real estate market,” said Sock-woo Jung,
President of Domestic Investment at IGIS.

KKR’s investment is being funded from KKR Asian Fund III. The investment
is KKR’s third real estate investment in South Korea. Previously KKR
invested in The-K Twin Towers, a prime office complex located in Seoul’s
Central Business District, in June 2014. The-K Twin Towers was sold to
Samsung SRA in January 2018 at a record price.

Since 2011, KKR has committed approximately US$ 2 billion in equity and
debt across nearly 50 real estate transactions in Asia Pacific markets
including South Korea, Australia, China, India, New Zealand and
Singapore. The firm has a dedicated team of approximately 20 real estate
professionals based in Asia Pacific spanning both the equity and credit
strategies.

About KKR

KKR is a leading global investment firm that manages multiple
alternative asset classes, including private equity, energy,
infrastructure, real estate and credit, with strategic manager
partnerships that manage hedge funds. KKR aims to generate attractive
investment returns for its fund investors by following a patient and
disciplined investment approach, employing world-class people, and
driving growth and value creation with KKR portfolio companies. KKR
invests its own capital alongside the capital it manages for fund
investors and provides financing solutions and investment opportunities
through its capital markets business. References to KKR’s investments
may include the activities of its sponsored funds. For additional
information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website
at www.kkr.com
and on Twitter @KKR_Co.

About IGIS

IGIS, the largest integrated real estate investment and asset management
firm in Korea, currently manages real estate assets valued at more than
KRW 22.6 trillion (US$ 20 billion; gross asset value). In August 2018,
the Institutional Real Estate, Inc. (IREI) named IGIS as the fourth
largest real estate manager in Asia in terms of assets under management.

Contacts

Media
For KKR Asia:
Cara Major, +852-3602-7335
Cara.Major@KKR.com
or
For
KKR South Korea:

Gaeun Choi, +82-2-6951-3546 / +82-10-9186-1324
KKR@thesignature.co.kr

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