[THE INVESTOR] Samsung Securities and Korea Investment Securities are in the race to acquire Commerzbank Tower, the tallest office building in Europe, according to local media reports Aug. 3.

Estimated to be worth 900 billion won (US$809.35 million), the sale of Commerzbank’s headquarters is garnering international attention. Singapore’s sovereign wealth fund GIC is also eyeing the prime real estate.



The lead financial manager for the deal Commerz Real came to Seoul last month and had talks with the two likely bidders over the transaction amount and the means to deliver the funds.

Samsung Securities will finance the acquisition with a 500 billion won fund it created last year under Samsung SRA Asset Management. Its affiliates Samsung Life Insurance and Samsung Fire & Marine Insurance will also contribute. This fund purchased So Ouest office tower in Paris in January for estimated 400 billion won.

KIS has been aggressively investing in overseas real estate as a new source of income, acquiring Norvatis’ headquarters in Paris and Astro Tower in Brussels this year. It will form a consortium with major institutional investors in South Korea for this deal.

The preferred bidder for the building in Frankfurt will be announced mid-August.

By Hwang You-mee (glamazon@heraldcorp.com)