IGIS Asset Management has successfully transformed a hotel that ceased operations due to the pandemic into a functional office space, marking a significant step forward in the urban revitalization of Chungmuro.

On March 18, IGIS Asset Management announced the completion of the remodeling and conversion of the T-Mark Hotel Myeongdong, located in Chungmuro, Seoul, into office space. The building, now named 15 Building, has undergone extensive renovations, increasing its floor area by 30%.

The project began in August 2021 when IGIS Asset Management acquired the T-Mark Hotel Myeongdong, which had ceased operations due to the decline in the tourism industry during the COVID-19 pandemic. The project, developed in collaboration with SK D&D, successfully converted the underutilized asset into a much-needed office space in a city facing a shortage of office supply. This redevelopment marks a growing trend where idle hotel assets are repurposed into office spaces.

Located in an area designated as a remodeling activation zone by the Seoul City Government, the building made the most of the land usage potential. The remodeling activation zone is intended to encourage the expansion and reconstruction of older buildings, allowing for up to a 30% increase in the floor area if specific architectural and seismic criteria are met.

As a result, the building's total floor area grew from 16,651 sqm to 21,646.11 sqm, and the floor area ratio increased from 504.38% to 750.30%.

The new design increased the usable space on each floor, with the standard floor area expanding by 330 sqm, boosting the efficiency ratio from 54% to 61.8%. The building's width has also been extended from approximately 14.6m to 21.7m, overcoming the original limitations and creating a more open office environment.

In addition, the building's height was increased from 13 floors to 15 floors, and the top two floors now offer premium office spaces with 4.8m ceiling heights, which are expected to meet the growing demand for high-end office environments.

The addition of louvered design elements has dramatically enhanced the building's aesthetics while improving energy efficiency by optimizing lighting and ventilation.

Value-add strategies also include the installation of new elevators and the creation of an open and welcoming lobby space, further enhancing the overall asset value.

An IGIS Asset Management representative commented, "With this project, we've maximized the value of a former idle building and created a high-quality office space that meets the growing demand for urban office environments. Unlike the trend in the U.S., where office spaces are being converted into hotels or residential buildings due to declining demand, South Korea is facing a shortage of office spaces in the city center, so we expect to see more hotel-to-office conversions in the future."

Moreover, IGIS Asset Management has consistently employed value-add strategies, purchasing underperforming assets and transforming them through remodeling and expansion. Notable examples include converting the lower floors of Yeouido O2 Tower into trendy retail spaces to attract foot traffic, and remodeling Jongno Samil Building, a first-generation high-rise, into a modern office building. IGIS Asset Management is also redeveloping aging buildings such as the Millennium Hilton Seoul, Gangnam New York Bakery Building, and Baegam Building to increase office supply in Seoul's downtown.

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