[Photo by Kiwoom Asset Management Co.]

South Korea’s Kiwoom Asset Management Co. said Friday it was named the preferred bidder to buy ING’s new global headquarters in Amsterdam, the Netherlands, joining the lengthening list of overseas property acquisitions by Korean capital.

Kiwoom Asset Management and Luna Advisors, an alternative investment advisory company with offices in New York and Seoul, would jointly invest in the new office building together with local investors. Under the agreement, Kiwoom would take up preferred shares in the building and receive a steady flow of fixed dividends, with an expected annual return rate in the upper 5 percent.

The 391,000-square-feet new global headquarters for the Dutch financial group started leasing in June. It consists of two seven-story buildings that are connected to each other by a bridge on the second floor. It was awarded the highest sustainability rating from BREEAM-NL in May.

The lease is for 15 years, with an optional five-year extension.

Kiwoom said the long-term lease was a solid investment that would generate stable returns. To finance its latest purchase, it plans to create a real estate fund in September with a maturity of five years or less.

Korean investors have been increasingly turning their eyes to overseas real estate in search for higher profits amid weak asset prices at home.

Earlier this month, a consortium of Korean brokerages led by Hana Financial Investment acquired the Hilton Vienna hotel in Austria for $375 million. In February, Korea Investment & Securities purchased the Tour Europe building in Paris for $330 million, its third real estate investment abroad this year. Samsung Securities also decided to acquire the Crystal Park office building in Paris for $778 million last month.

As of July 19, overseas real estate funds in Korea registered a fund balance of 46.1 trillion won and net asset value of 47.2 trillion won, surging nearly sevenfold over the past six months, according to Korea Financial Investment Association.

By Kim Je-lim and Kim Hyo-jin

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