Molao New Urban Area, Molao Ward, Ha Dong District, Hanoi, Vietnam. [Photo by Booyoung Group Co.]
South Korea’s mid-sized constructor Booyoung Group Co. emerged as a property juggernaut as it was tapped as the candidate to become the new owner of KEB Hana Bank’s headquarters building in downtown Seoul.
According to sources in the real estate industry on Thursday, Booyoung beat five other contenders by offering the highest bidding price of more than 900 billion won ($801 million) for the building at the heart of the commercial district in downtown Seoul. The building will continue to be rented out to Hana Financial Group units including Hana Card and Hana Life, guaranteeing stable returns for the builder for a while.
Booyoung has been frequent in the local property market armed with its liquid assets of 5 trillion won. The group took over Samsung Life Insurance’s headquarters building for 575 billion won in January last year. In September, it snatched up Samsung Fire & Marine Insurance’s building for 439 billion won, according to sources. Two months later, it purchased POSCO E&C Tower located in Songdo, Incheon for 300 billion won. The building hosts not only POSCO E&C but also Cisco and World Bank’s Korea office.
It has shown its voracious appetite for real estate not only office building but also hotels and resorts. In 2011, it acquired Muju Deogyu Mountain Resort and Jeju Convention Center’s Anchor Hotel from Kumho Industrial to build Jeju Booyoung Hotel. It also bought a golf course Maestro CC in Anseong, Gyeonggi Province, and O2 Resort in Taebaek, Gangwon Province in 2016.
Founded in 1983, Booyoung has secured a strong capital power by leading a successful housing rental business over the past 30 years.
By Kim Gang-rae and Song Gwang-sup
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]