GIC, CPPIB together buys Seoul mall for USD 263 million
May 18th, 2015
Singapore sovereign wealth fund GIC and Canada Pension Plan Investment Board (CPPIB) will be acquiring the D-Cube retail mall in Seoul in a joint venture for USD 263 million, with each own a 50 percent stake in the mall following the acquisition from Daesung Industires.
D-Cube mall, which was completed in 2011, is situated next to Sindorim Station, a major transportation hub connecting Seoul with Incheon and other major metropolitan cities near the capital.
The mall will be rebranded as Hyundai Department store and will be operated by Hyundai, one of the top retail operators in South Korea, GIC and CPPIB said. Hyundai, working alongside GIC and CPPIB, will also reposition the mall to better serve the Korean retail market’s expected steady growth over the long term.
GIC is a global investment firm oversees more than USD100 billion in assets under management. The firm manages Singapore’s foreign reserves and investments across a wide range of asset classes, including real estate, private equity, equities and fixed income. GIC has investments in over 40 countries.
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP). In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. By the end of 2014, the CPP Fund totalled CAD 238.8 billion , of which CAD 26.3 billion represented real estate investments.
Loh Wai Keong Managing Director & Co-Head Asia, GIC Real Estate, said the investment in the D-Cube Retail Mall reflects the firm’s confidence in the long-term growth of Korean domestic demand and it is also consistent with the company’s investment strategy of acquiring high-quality, centrally-located assets with upside potential.
Mr Jimmy Phua, managing director and head of real estate investments in Asia for CPPIB said the company is pleased to gain exposure to one of the largest retail markets in Asia through the deal, working alongside experienced and aligned partners.