SOFAZ Sells Seoul Pine Ave Tower to Shinhan Card

Posted on 11/03/2020


The State Oil Fund of the Republic of Azerbaijan (SOFAZ) revealed the sale of Pine Avenue Tower A, a 25-storey office building located in Seoul’s central business district submarket, for KRW 521.5 billion (US$ 459,356,000) to Shinhan Card Co. Ltd., the major tenant at the building. Shinhan Financial Group owns Shinhan Card.

Pine Avenue Tower A was built in 2011. SOFAZ purchased the asset in March 2014 for KRW 470 billion. The total return from the sale was 36.2% (Income return 31.4%, capital return 4.8%).

Israfil Mammadov, the executive director of SOFAZ, said in a press release, “Pine Avenue Tower A was a great opportunity for us to acquire a Class-A building at an attractive basis and to capitalize on the tremendous momentum in the property market. Its successful disposition has validated this strategy and delivered strong risk-adjusted returns.

Further, this sale demonstrates the resilient fundamentals of the real estate market, despite the challenging circumstances due to COVID-19. This direct asset sale is in line with our revised portfolio strategy that focuses on indirect real estate investments.”

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