MDM Asset Management Buys Shinhan Card's Seoul HQ in KRW 800 Billion Sale-Leaseback

SEOUL, October 5, 2026 – MDM Asset Management has acquired Pine Avenue Tower A, the headquarters building of Shinhan Card, for KRW 800 billion in a sale-leaseback transaction advised by Colliers, the firm announced. Colliers described the deal as one of the largest transactions of its kind in 2026.

Under the structure, Shinhan Card will lease the entire building back for 10 years. The price equates to approximately KRW 40.2 million per 3.3 sq. m. based on gross floor area.

Pine Avenue Tower A Sale-Leaseback Terms

Shinhan Card sold the asset while remaining in its existing headquarters. According to Colliers, the sale allows Shinhan Card to secure liquidity while continuing to use the building. For MDM Asset Management, the long-term whole-building lease provides stable and predictable rental income from a tenant with strong creditworthiness, the firm said.

The building is effectively 100% leased under the leaseback. The stable tenant base, given the building's use as Shinhan Card's headquarters, was cited as one of the key investment points in the transaction. Multiple domestic and international investors, including financial investors, participated in the bidding process.

Property Details: 100 Eulji-ro, Jung-gu

Pine Avenue Tower A is located at 100 Eulji-ro, Jung-gu, Seoul. The prime office building has six basement levels and 25 floors above ground, with a gross floor area of approximately 65,774 sq. m., or about 708,000 sq. ft. The price works out to roughly KRW 12.2 million per sq. m.

The Pine Avenue complex comprises Towers A and B, with a combined gross floor area of approximately 130,000 sq. m. The transaction covers Tower A only.

The property sits on the corner of the Euljiro 2-ga intersection and has direct underground access to Euljiro 3-ga Station on Seoul Subway Lines 2 and 3.

Shinhan Card's Ownership History

Shinhan Card previously used Post Tower in Chungmuro, Seoul, as its headquarters before relocating to Pine Avenue Tower A in 2017. In 2020, the company exercised its right of first refusal and acquired the building from the State Oil Fund of the Republic of Azerbaijan for approximately KRW 521.5 billion. The latest sale price is about KRW 278.5 billion above that 2020 acquisition price, a comparison that excludes capital expenditures, financing, taxes and selling costs.

Seoul CBD Office Market Context

Colliers said investors in the Seoul central business district office market have adopted a more selective approach amid continued concerns over higher financing costs from rising interest rates and potential new office supply. Colliers assessed the appropriate leaseback terms for Shinhan Card and highlighted the stable cash flow from the long-term, whole-building lease as a key investment rationale for prospective investors.

New CBD completions have lifted vacancy in the district. CBRE reported Seoul Grade A vacancy across the three major business districts at 4.2% in the second quarter of 2026, with CBD vacancy at 6.6% following the completion of G1 Seoul and Rene Square. JLL reported CBD vacancy of 12.3%, while Newmark reported 7.0% in the third quarter, up from 6.5% in the prior quarter. Savills estimated 2026 CBD deliveries at about 211,000 sq. m., equal to roughly 4.5% of total CBD prime stock. Seoul Grade A cap rates were reported at about 4.2% by CBRE.

Under the fully leased structure, the buyer takes on a contractual lease rather than leasing-up risk. The income stream depends on Shinhan Card's credit quality and lease obligations, as well as its renewal decision after the 10-year term.

Colliers' Korea Office Sales Track Record

Sungwook Cho, Managing Director and Head of Capital Markets & Investment Services for Korea at Colliers, said: "Despite a highly selective investment landscape driven by rising interest rates, we successfully unlocked the true value of Pine Avenue Tower A by structuring a stable, long-term sale-and-leaseback that appealed directly to core investors. This transaction underscores Colliers' deep expertise in aligning the liquidity needs of occupiers with the risk-adjusted yield requirements of top-tier capital, further cementing our leadership in Korea's prime office market."

Pine Avenue Tower A is the latest in a series of major Korean office asset sales advised by Colliers this year, including Eulji Twin Tower, Hana Insurance Building and Gangnam 358 Tower, with a combined value of approximately KRW 3.24 trillion, according to the firm.

Colliers is also advising on the sale of RENE Square, a newly built CBD office building in Seoul with a gross floor area of 54,064 sq. m. that is leased by the Serious Crimes Investigation Agency, a newly established government agency.

Outlook

The transaction pairs a corporate occupier's need for liquidity with an investor's preference for contracted income, and its pricing of roughly KRW 12.2 million per sq. m. provides a data point for prime Seoul office assets. Colliers is advising on the pending RENE Square sale.

Sources

• Colliers: https://www.colliers.com/en-xa/news/colliers-korea-pine-avenue-tower-a-sale-seoul