TORONTO, CANADA/SINGAPORE , 9 May 2018 – Canada Pension Plan Investment Board (“CPPIB”) and GIC have entered into a joint venture partnership to acquire a Grade A office building in Seoul, Kumho Asiana Main Tower from Kumho Asiana Group, parent of Asiana Airlines for KRW418 billion (US$380 million).

Following this transaction, CPPIB and GIC will each own a 50% stake in this landmark property, which is located in the centre of Gwanghwamun, a core office, government and cultural precinct in Seoul’s Central Business District, and offers good access to Gwanghwamun Station, a key public transport hub. Due to its prime location, surrounding amenities and historical and cultural importance, the Gwanghwamun district is favoured by both local and multinational tenants.

Jimmy Phua, Managing Director and Head of Real Estate Asia, CPPIB said, “The opportunity to invest in one of the largest office markets in Asia through this prime office building fits well with CPPIB’s strategy to invest in top-tier, well located real estate. In addition, this investment also reflects CPPIB’s desire to increase our investments in the Asia Pacific region, and we’re pleased to do so alongside GIC, one of CPPIB’s long-standing partners.”

The property was sourced and will be managed by DWS (formerly Deutsche Asset Management), one of the world’s leading asset managers. With 49 billion euro in global real estate assets under management (as of 31 December 2017), DWS has a 45 year track record in managing real estate assets.

Lee Kok Sun, Chief Investment Officer, GIC Real Estate, said, “GIC has been investing in South Korea since the late 1990s. This investment reflects our confidence in South Korea’s continued growth, and commitment to identifying attractive opportunities in this market. We believe this high-quality, well-located property will generate resilient returns over the long term, and look forward to working with CPPIB and DWS to enhance the value of this asset.”