[THE INVESTOR] Kumho Asiana Group is selling its headquarters building in central Seoul for 418 billion won (US$388 million) to Deutsche Asset & Wealth Management, according to industry sources on May 10.

Deutsche was named a preferred bidder for the sale in March and has been conducting due diligence. The deal is expected to be closed by May 17. 

The building sale is part of Kumho’s financial restructuring for Asiana Airlines, its debt-ridden airline affiliate.

Of the total selling price, 163.8 billion won will be used to pay debts, while the remainder will be divided among shareholders of the building developer. Asiana with 94 percent stake and other Kumho companies will secure 241.5 billion won in cash.

Established in 2008, the 29-story building is one of landmark buildings in the commercial business district of Gwanghwamun. The total floor space is 6,695 square meters.

By Lee Ji-yoon (jylee@heraldcorp.com)