Koramco REITs Management & Trust, a real estate asset manager based in Seoul, has completed the sale of a landmark property to Samsung SRA Asset Management for 1.1 trillion won ($841 million), marking South Korea's largest commercial real estate deal this year.

The Asset is an 81,117-square-meter skyscraper located in the Gangnam Business District in southern Seoul. The office property forms part of Samsung Town, an office complex housing the affiliates of Korea’s top conglomerate Samsung. Samsung Fire & Marine Insurance is the primary tenant of The Asset.

Koramco acquired the property from Samsung C&T, the group's construction arm, at 748 billion won in 2018 through the Kocref No. 43 real estate investment trust (REIT). After acquiring the property, Koramco named it The Asset, in a move to dilute the Samsung brand image and diversify the tenant pool.

The deal closure comes over two months after Samsung SRA was selected as the preferred bidder in July.

Through the deal, the asset manager has generated a 15 percent return, double the initial target. The capital gains from the sale amount to 276 billion won. Including dividend payouts over the six-year investment period, the total profit garnered from The Asset property reaches 398 billion won.

The National Housing and Urban Fund, a state-run fund under the Korea Housing & Urban Guarantee Corporation, was the largest shareholder of the Kocref No.43 REIT. It logged 200 billion won in profit from the investment, the asset manager explained.

The 1.1 trillion-won sale is the largest commercial real estate deal to happen in Korea this year so far, according to Koramco.

Though the vacancy rate for office properties has remained low in the Seoul area in recent years, sale transactions have been slow due to high prices and high interest rates. Even some prime office properties have not been able to secure a preferred bidder.

"While there were concerns about overpaying at the time of the acquisition (in 2018), it was an opportunity to acquire a trophy asset in the Gangnam area,” Koramco REITs & Trust Vice President Yoon Jang-ho said. Yoon oversaw the investment and sale of The Asset.

"Going forward, Koramco’s mission is to continue sourcing excellent deals and delivering superior returns to both domestic and international investors," Yoon said.

With the Samsung SRA’s acquisition of The Asset, all the units at Samsung Town are owned by the group's affiliates. Samsung Life Insurance and Samsung Electronics own two other towers in the complex.