Coramco to Remodel 'Etivers Tower' Near Namdaemun

Coramco Asset Trust announced on July 1 that it will push forward with the remodeling of "Etivers Tower," an established office building near Namdaemun (Sungnyemun) in Seoul, which was acquired through the "Coramco Value Investment Sungnye REITs."

Provided by Koramco

Having completed the asset acquisition in March, Coramco plans to significantly upgrade the building's facade, lobby, private and common areas, and major facilities, aiming to enhance both its appeal as an office and operational efficiency. Located at 3 Sowol-ro, Jung-gu, Seoul, Etivers Tower is a large office building with four basement levels and 22 above-ground floors, totaling approximately 45,477 square meters. The asset acquired by Coramco comprises all above-ground office floors and part of the first basement retail area, amounting to about 38,532 square meters—or roughly 85% of the total floor area. The building is within walking distance of Seoul Station and Hoehyeon Station, and is adjacent to Sungnyemun, Namdaemun Market, Myeongdong, and the City Hall business district, giving it a prime location.

Coramco acquired this asset at approximately 22 million won per 3.3 square meters (pyeong) based on gross floor area. This figure is significantly lower than the average transaction price for large office buildings of over 33,000 square meters traded in Seoul's central business district (CBD) over the past five years. Compared to nearby offices that traded at 25 million to 37 million won per pyeong during the same period, the asset is considered to have secured substantial price competitiveness.

The leasing base is also stable. Etivers Tower currently maintains a 100% office occupancy rate, with tenants including Etivers, Lotte Insurance, and the Nuclear Safety and Security Commission. Notably, core tenant Etivers participated in this investment and submitted a lease renewal commitment, further strengthening long-term lease stability. Coramco plans to pursue asset improvement and leasing strategies in tandem, leveraging the stable cash flow.

Another key background for this investment is the large-scale transformation currently underway around Namdaemun and Seoul Station. The development of the northern area of Seoul Station, redevelopment projects in Seosomun and the Seoul Station area, and the Millennium Hilton site development are all progressing, suggesting the potential for a significant reshaping of the business and commercial environment. Coramco believes that by revamping the aging image of the existing building and improving its physical performance, it will be able to successfully absorb new demand arising from this regional transformation. Accordingly, the remodeling will maximize the building's inherent structural advantages—such as an efficient standard floor layout of about 1,213 square meters (367 pyeong) and separated access routes for above-ground offices and underground retail areas—while enhancing the independence and user convenience of the office spaces.

This project is an extension of Coramco's value-add investment strategy, which focuses on thoroughly analyzing the location and characteristics of established offices to enhance their value. Coramco has a track record of success, including the remodeling and 100% leasing of the former Citibank Korea Da-dong building (later sold as "K-Square City" for a profit of about 60 billion won), as well as the modernization of established assets in prime locations, such as "K-Square Hongdae."

Coramco intends to leverage its accumulated experience in coordinating with sectional owners, defining construction scopes, and communicating with tenants during the operation of Etivers Tower. The company aims to enhance the asset's competitiveness, not only by upgrading the exterior but also by considering the location, tenant demand, and operational structure together.

The Coramco Value Investment Division is pursuing a strategy that combines development and asset regeneration. For established assets in prime locations, value is increased through remodeling and operational improvements, while sites requiring new development are transformed into landmark assets. The ongoing "L Project" near Gangnam Station, which will supply a prime office building with a gross floor area of about 66,000 square meters (20,000 pyeong), and development projects like "K-Square Gangnam 2" are part of this approach.

Lee Sangheon, Head of Value Investment at Coramco Asset Trust, said, "Etivers Tower is an asset with high intrinsic value due to its core CBD location and stable leasing structure. Through a comprehensive office remodeling, we plan to enhance both the building’s physical performance and operational efficiency, transforming it into a landmark office in the CBD." He added, "Rather than simply holding on to aging buildings, we aim to contribute to the evolution of the urban environment and maximize value for investors by reorganizing spaces to meet changing work environments and local demand."

This content was produced with the assistance of AI translation services.