South Korea: An IGIS Asset Management-owned coliving and hotel building in Seoul Hongdae neighbourhood has attracted five shortlisted bidders, including SK D&D and a Blackstone consortium.
The mixed-use property, known as Noudit Hongdae and operated as Creator Town Seogyo by Korean operator Local Stitch, offers 296 private rooms, co-working and retail space, and shared amenities such as kitchens and a fitness centre.
It spans seven floors above ground and three basement levels, totalling 17,000 square metres.
IGIS, South Korea’s largest real estate asset management firm, acquired the building in 2021 via its listed vehicle IGIS Residence REIT for 132 billion won (£75.8 million).
It launched the sale ahead of a loan repayment deadline next month. The process is being led by Cushman & Wakefield Korea, and the building is expected to sell for around 150 billion won.
The building is leased to Local Stitch until 2033. The company operates 23 co-living properties across the country and was recently acquired by D&D Property Solutions, a subsidiary of SK D&D.
SK D&D, the real estate arm of Korean conglomerate SK Group, is bidding through its investment arm, D&D Investment.
Other contenders include a Kolon House Vision–Aion Asset Management joint venture and a consortium between Blackstone and Travelodge Hotels.
Blackstone and Travelodge are reported to be considering a hotel conversion, a strategy the pair used following their acquisition of an office building in Seoul’s Gangnam district last year.
Constructed in 2023, the property recorded a 96 per cent occupancy rate in 2024, supported by its location in the busy university district of Hongdae, known for its nightlife, restaurants and youth culture.
IGIS is expected to select a preferred bidder in June.
Highlights:
- IGIS Asset Management puts Seoul co-living asset up for sale
- Blackstone and SK D&D among five shortlisted bidders
- Hongdae property offers 296 units and mixed-use amenities
- Building recorded 96 per cent occupancy in 2024
- Sale expected to close in June, led by Cushman & Wakefield Korea
