SC Capital Partners, a Singapore-based private equity real estate firm, has announced the sale of an education-focused commercial building in Daechi-dong, Gangnam, Seoul. The property, acquired in October 2016 for KRW26b, was sold for KRW54b, more than doubling its initial investment. The transaction was completed at a net operating income yield of below 3% based on the sale price.
Located in one of Seoul’s most prestigious education districts, the six-storey building boasts a gross lettable area of approximately 4,189 square metres and has maintained full occupancy. The area is known for its high concentration of schools, private tutoring academies, and upscale residential developments, which have contributed to stable rental growth and resilient performance during SC Capital Partners’ ownership.
The firm enhanced the tenant profile by transforming the ground floor retail space from a discount store to a trendy stationery gift shop, complementing the educational tenants. Additionally, proactive leasing initiatives significantly improved rental income.
Suchad Chiaranussati, Chairman and Founder of SC Capital Partners, stated, “This successful exit reflects our conviction in education as a long-term structural theme and our ability to generate value through active asset management.”
The sale underscores SC Capital Partners’ focus on the education sector, which is supported by strong structural demand in South Korea. The firm’s investment in the property exemplifies its strategy of leveraging thematic, locally grounded approaches to deliver robust outcomes for investors.
