18 May 2015
SINGAPORE/TORONTO, CANADA (18 May 2015) – GIC and Canada Pension Plan Investment Board (“CPPIB”) have entered into a joint venture partnership to acquire the D-Cube Retail Mall in Seoul, South Korea from Daesung Industries for a total consideration of US$263 million.
Following the transaction, GIC and CPPIB will each own a 50% stake in the D-Cube Retail Mall. Completed in 2011, D-Cube is an income-generating, high-quality retail mall in a prime location. The mall is situated next to Sindorim Station, a major transportation hub connecting Seoul with Incheon and other major metropolitan cities near Seoul.
The mall will be rebranded as Hyundai Department store and will be operated by Hyundai, one of the top retail operators in South Korea. Working alongside GIC and CPPIB, Hyundai will reposition the D-Cube Retail Mall to better serve the Korean retail market’s expected steady growth over the long term.
Loh Wai Keong, Managing Director & Co-Head Asia, GIC Real Estate Pte Ltd, said, “Our investment in the D-Cube Retail Mall reflects our confidence in the long-term growth of Korean domestic demand and is consistent with our strategy of acquiring high-quality, centrally-located assets with upside potential. As a long-term value investor, our interests are aligned with CPPIB and we look forward to partnering them in this acquisition.”
“We are excited about the opportunity to make our first retail investment in South Korea through this joint venture with GIC,” said Jimmy Phua, Managing Director, Head of Real Estate Investments Asia, CPPIB. “The D-Cube Retail Mall is a prime retail asset located in a growing and affluent area, and through this investment, we are pleased to gain exposure to one of the largest retail markets in Asia, working alongside experienced and aligned partners.”