UUK-based asset manager Aberdeen is discreetly negotiating with Pebblestone Asset Management over the potential acquisition of Pacific Tower in central Seoul. The office tower had previously failed to transact following a subdued bidding process late last year.

Aberdeen approached Pebblestone privately after the failed auction to explore a direct transaction. Industry watchers are paying close attention, given Aberdeen’s track record of successful value-add investments in South Korea, including deals involving Daeil Building, the Daewoo Shipbuilding & Marine Engineering Building, Namsan N Tower, and most recently, Samwon Tower.

Pacific Tower, located at 135 Seosomun-dong in Seoul’s Jung-gu district, comprises seven basement levels and 23 above-ground floors with a total floor area of roughly 59,500 square meters.

Originally developed by Myongji Educational Foundation and completed by Myongji Construction in 2002, the building has gone through multiple ownerships.

Midas Asset Management acquired it in 2007 for USD 188 million, renaming it Olive Tower. In 2014, Deutsche Asset Management (now DWS) purchased it and rebranded it as Pacific Tower. Pebblestone Asset Management took over the asset in 2018 for around USD 312 million, securing USD 138 million from the Housing and Urban Fund managed by Mirae Asset Global Investments. The acquisition was priced at approximately USD 5,240 per square meter.

In anticipation of the fund’s maturity in March 2025, Pebblestone listed the tower for sale in November 2024. Despite participation from three bidders during a December auction, none met the seller’s target of USD 7,700 per square meter.

Weakened liquidity and increased competition from nearby listings in Seoul’s CBD—including the Seoul Finance Center, Crescendo Building, and KDB Life Tower—were cited as reasons for the lackluster outcome.

Aberdeen’s interest in Pacific Tower is seen as a forward-looking play on the massive transformation of the Seosomun area. A series of landmark redevelopments are currently underway, poised to reshape the district’s commercial landscape by 2030.

These include:

• Donghwa Building (Zone 10), scheduled for completion in Q1 2028,

• Former JoongAng Ilbo Building (Zones 11 and 12), targeting 2029,

• Seosomun Building (Seoul Station–Seodaemun Zones 1 and 2), slated for 2030.

Together, these projects will inject more than 396,000 square meters of premium office space into the Seosomun corridor. Market analysts believe Aberdeen’s bid aligns with its value-add strategy: acquiring at favorable pricing ahead of a cyclical upswing catalyzed by area-wide redevelopment.

An industry source noted, “This could be a textbook Aberdeen deal. They’re known for timing plays where the fundamentals are strong but the market sentiment is still recovering.”

This article was originally published by Corebeat on June 5, 2025.