Brookfield is moving to retain ownership of the International Finance Center (IFC) in Yeouido rather than sell, shifting from last year’s asset-by-asset disposal plan to a hold-and-recapitalize strategy, according to investment-banking sources.

After a failed portfolio sale, Brookfield sold the Conrad Seoul hotel in 2024 but has now pivoted to a continuation fund that will acquire the remaining assets—One, Two and Three IFC and IFC Mall—and reset the investor roster.

The new fund is targeting roughly KRW 800 billion in capital commitments, with some legacy LPs rolling and others taking liquidity.

Several domestic and overseas pensions are evaluating commitments, creating a path for Korean institutions to enter a landmark Seoul office complex.

Brookfield bought IFC from AIG in 2016 for KRW 2.55 trillion.

The assets sit in Korean SPVs—one each for the three office towers, the mall and the hotel—while a Singapore-domiciled fund holds the SPV equity. That cross-border structure is why the KRW 200 billion deposit dispute tied to Mirae Asset’s aborted 2022 acquisition is being arbitrated at the Singapore International Arbitration Centre (SIAC).

Originally aiming for a single package exit to Mirae, Brookfield was forced to rethink after the deal collapsed. In 2024 it sold only the Conrad (to ARA Asset Management), and the market expected separate sales of the remaining assets.

Instead, Brookfield now plans to transfer the residual portfolio into a new continuation vehicle, bringing in fresh LPs while providing an exit roughly 10 years after initial investment for legacy backers.

IB sources estimate the Conrad fetched about KRW 500 billion. The continuation fund is set to acquire the remaining assets at KRW 3.7 trillion, implying a combined portfolio value near KRW 4.2 trillion when the Conrad price is added—higher than Mirae’s c. KRW 4.1 trillion indication at the 2022 liquidity peak.

Simple comparisons are imperfect given rent growth since then, but the direction supports a hold-and-grow thesis.

Not all LPs agreed on timing. Some legacy LPs, notably China Investment Corporation (CIC), are understood to have pressed for a full exit, while others favored staying in given firm asset fundamentals.

The continuation fund balances these interests: sellers get liquidity, and stayers (plus new investors) retain exposure to future upside. JLL is advising on the process.

Market talk indicates Brookfield has floated terms around a 6% cash yield (on distribution basis) and a low-11% IRR.

IFC—about 125,547 pyeong (~415,000 sqm) GFA—reportedly runs at near-zero vacancy with ongoing rental uplifts, positioning it as a core, income-anchored play in Seoul’s prime office market.

Because the original fund’s beneficiaries were entirely foreign LPs, the recap is seen as a clean entry point for Korean pensions seeking long-duration, inflation-resilient cash flows from a trophy CBD asset.

As one IB source put it, “This is a rare chance to diversify alternatives with a top-tier, core office aligned to long-term liability profiles.”