[Edaily Marketin JI YEONG-EUI Reporter Kim Yeon-ji] Hangang Asset Management has finalized the establishment of the “ONE X” fund for the large-scale office development project in the Euljiro Cheobyo District. Since the appointment of CEO Kim Su-cheol—formerly the head of the Investment and Finance Division at the National Federation of Credit Unions—efforts to recruit investors and coordinate the transaction structure have gained momentum, and the large-scale real estate deal, which had been stalled for a long time, appears to be finally moving toward closing.

According to the investment banking (IB) industry on the 2nd, the establishment of the ONE X investment fund, which Han River Asset Management has been pursuing, was finalized on the 26th of last month. Once the Share Purchase Agreement (SPA) is signed and the balance is paid on the 3rd, the process of repurchasing shares from ONE X’s existing investors is also expected to be finalized. Concurrently, the stability of the ONE X project has significantly improved as various deal conditions have fallen into place, including a capital increase and refinancing of the main project financing (PF) totaling approximately 1.6 trillion won, as well as Daewoo E&C’s commitment to ensure completion.

One X is a large-scale CBD office project being developed through the urban renewal-type redevelopment of the Subeop District in Ipjeong-dong, Jung-gu, Seoul. It will consist of 7 basement levels and 33 above-ground floors, with a total floor area of approximately 170,000 square meters. As a mega-office complex located near Euljiro 3-ga Station, it is considered a prime office candidate within Seoul’s central business district.

The fund established by Han River Asset Management is intended to repurchase the existing investor stakes in Twin Works PFV, the project development entity for One X. Twin Works PFV had previously transferred the majority of its shares to external investors, including Aberdeen and Com2uS, in 2021. This structure was similar to a pre-sale arrangement, where payment is made after completion.

Since then, the project’s viability has changed significantly. While One X was originally planned as a 23-story building with a gross floor area of around 35,000 pyeong, it was expanded to 33 stories and a gross floor area of approximately 52,000 pyeong following an increase in the floor area ratio and the approval of revised permits. Based on the current market value of newly constructed offices in the CBD, which is around 40 million won per pyeong, the asset value of One X upon completion is estimated to exceed approximately 2 trillion won.

The One X deal took a considerable amount of time to finalize due to the processes of recruiting investors and coordinating the transaction structure. As the project scale expanded, the burden of raising equity increased, and key conditions—such as the terms for repurchasing existing investors’ stakes, refinancing to increase the main project financing (PF), and the contractor’s guarantee of completion—had to be met simultaneously. Market observers note that significant coordination was required to reach closing as the One X investment structure underwent multiple adjustments.

It is also believed that the closing was facilitated by the momentum gained in Han River Asset Management’s funding and structuring efforts following the appointment of CEO Kim Soo-cheol. CEO Kim, formerly the head of the Investment and Finance Division at the National Credit Union Federation, has over 20 years of experience managing institutional funds and overseeing alternative investments, including real estate, infrastructure, and private equity. Market observers believe that CEO Kim’s network of institutional investors and his experience in structuring deals played a key role in the final funding stages of a large-scale mixed-use real estate deal like One X. The establishment of this fund is regarded as a major achievement in closing a large-scale real estate deal by Hangang Asset Management since CEO Kim took the helm.

An industry insider stated, “Given the limited supply of newly constructed offices in the CBD recently, investor interest in large prime office buildings in the Euljiro area remains high,” adding, “Since One X is highly symbolic in terms of both location and scale, there is a general consensus that it offers ample potential for value appreciation after completion.”