Invesco Sells Seoul's Korner 136 for $187M in Hongdae Exit

Invesco Real Estate has sold the Korner 136 commercial complex in Seoul's Hongdae district for 252 billion Korean won, equivalent to $187 million. The US fund manager completed the sale to Korean conglomerate Aju Group in August, according to a company statement.

Calvin Chou, head of Asia Pacific and co-chief investment officer at Invesco Real Estate, told Mingtiandi the asset presented a compelling opportunity for value creation when acquired in January 2020. "The project required an imaginative approach to the site and a full range of planning, operational and development skills to deliver the high-quality final product we see today in Hongdae," Chou said.

A Record Hongdae Transaction

The sale price for the 13,275 square metre property equates to nearly 19 million Korean won per square metre. Seoul Property Insight reported this as a record price for the Hongdae area. Invesco, working with IGIS Asset Management, redeveloped the site after purchasing the former Hwapyeong Building in 2020.

The fund expanded the gross floor area from 4,800 square metres to over 13,000 square metres, finishing construction in late 2024. The new 12-storey tower, funded by German investors, was fully leased to the Korea Institute of Startup and Entrepreneurship Development before completion.

Invesco's Hongdae Track Record

This sale represents Invesco's third disposal in the Hongdae university enclave. The firm's activity in the neighborhood dates back to 2016.

The manager also added co-living exposure in Hongdae last year. Invesco partnered with D&D Investment to acquire Noudit Hongdae for 146 billion won, with SPI reporting the venture emerged as the preferred bidder in June 2025.

Seoul's Investment Climate

Invesco stated that Korner 136 fetched a substantial premium to recent local comparables. The exit comes as Seoul investors focus more closely on income security amid rising funding costs. Cushman & Wakefield's second-quarter capital markets report indicates capital is steering towards core and prime assets with stable income.

The consultancy tracked 29 Greater Seoul commercial property transactions worth 4.4 trillion won in the second quarter, an 11 percent decline from the preceding three months. First-half transaction volume fell 4 percent year-on-year to 9.3 trillion won.

Office activity remained significant, accounting for 3.2 trillion won across 10 second-quarter deals. These combined institutional value-add strategies with corporate purchases. Pacific Asset Management acquired Eulji Twin Tower West for 657 billion won using a National Pension Service-backed fund. Hana Alternative Asset Management and Hana Securities bought the Hana Securities Building for 811.2 billion won.

Hotel investment rose 71 percent year-on-year to about 1.1 trillion won in the first half. The largest hospitality transaction was CapitaLand Investment's purchase of Voco Seoul Myeongdong for 368.6 billion won. Retail investment more than tripled year-on-year in the first half, though second-quarter volume fell 46 percent to 183.7 billion won, with activity concentrated in high-street districts like Gangnam and Seongsu. Cushman & Wakefield expects capital to concentrate further in core and prime properties as borrowing costs rise.

Goldman Sachs Alternatives bought the Mercure Ambassador Seoul Hongdae hotel and retail complex for 262 billion won in July 2025, following its repositioning of the adjacent Scarlet Building. Goldman cited the location's high foot traffic and strong flagship retail demand as key attractions.