법무법인(유한) 율촌 | Yulchon LLC

Yulchon"s Real Estate & Construction Group advised KORAMCO in connection with a KRW 1.172 trillion acquisition of an office building under construction in Seoul. The acquisition was structured and consummated using 2 different REITs, the tax-efficient real estate investment vehicle available under the Real Estate Investment Act of Korea. The REITs were established and are managed by KORAMCO and the primary investor is the National Pension Service, one of the largest pension funds in Korea ("NPS"). The building consists of 7 underground floors and 24 floors above ground, comprising a total area of 175,536.7 m2.

The Real Estate & Construction Group provided advice regarding all aspects of this transaction, ranging from due diligence, drafting and negotiation of various transaction documents, including the purchase and sale agreement, the master lease agreement, investment agreement, share subscription agreement, financing documents, and other ancillary documents, the establishment of the REITs (which included obtaining business licenses for REITs from Ministry of Land, Transport and Maritime Affairs) and the real estate registration procedure.

This transaction is recorded as the largest REIT acquisition in Korea, and the first acquisition by the NPS of an office building under construction.