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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Hyundai Motor Group has initiated a plan to monetize its key business locations across the Seoul metropolitan area and provincial regions through a collaboration with Koramco Asset Trust. Under the arrangement, Koramco will acquire Hyundai’s assets via project real estate investment trusts (REITs), and Hyundai will lease the assets back.
On January 6, Koramco announced that it will begin the securitization of Hyundai’s major nationwide properties, including sales offices, service centers, customer support facilities, high-tech centers, and used car centers located in prime metropolitan and provincial locations.
Under the structure, Koramco will establish project REITs to purchase the assets, and Hyundai will enter into long-term sale-and-leaseback agreements to continue operating its business hubs. The approach is designed to unlock the value of the assets while allowing Hyundai to maintain operational continuity.
Koramco and Hyundai plan to complete the REIT formation and asset transfer process in the first half of the year. Koramco will act as the asset management company (AMC) for the REITs, overseeing efficient asset management and generating stable rental income.
The asset monetization initiative is intended to enhance Hyundai’s medium- to long-term financial structure beyond short-term liquidity needs. Proceeds from the REITs are expected to be reinvested in future mobility, electrification, and other growth initiatives to strengthen the company’s competitiveness.
Koramco plans to employ a combination of physical asset REITs and project REITs to optimize asset value and pursue long-term investment returns. Monetizing provincial assets is also anticipated to inject liquidity into local markets and stimulate regional economic activity.
For certain properties, Koramco intends to pursue remodeling or redevelopment after obtaining the necessary approvals, aiming to generate capital gains over the medium to long term while maintaining Hyundai’s operational functions.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
