M&G Real Estate has acquired a 25.3% stake in the five-star Conrad Seoul Hotel in South Korea for US$37.5m (鈧�34.8m).
The investment on behalf of a separately managed account focusing on value-add opportunities brings M&G鈥檚 South Korea assets under management to around US$3bn.
Located in Yeouido, Seoul鈥檚 financial business district, the 434-room Conrad Seoul Hotel is part of the International Finance Centre Seoul. M&G plans to optimise room layouts and repurpose event spaces to boost revenue.
Daniel Cho, head of Korea, M&G Real Estate, said: 鈥淎s central business districts around the world evolve, value add strategies can reposition existing buildings and upgrade assets to drive higher returns.
鈥淪eoul鈥檚 hospitality sector is at an inflection point with revenue expected to reach nearly US$10bn by 2029. This acquisition demonstrates M&G鈥檚 expertise in identifying assets that can be future-proofed to stand the test of time.鈥�
Martin Seol, head of targeted strategy, M&G Real Estate Asia, said: 鈥淎s our first hospitality asset for this strategy, the Conrad Seoul Hotel provides portfolio diversification and demonstrates our approach in action across different property sectors.鈥�
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