 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Shinsegae Property has voiced strong opposition to IGIS Asset Management’s move to sell Centerfield, warning that it may pursue legal action if the asset manager proceeds unilaterally with the sale.
A Shinsegae Property official said on January 15 that the company has “never considered the sale of Centerfield, nor has it agreed to any unilateral decision by the asset manager to pursue a sale.” The official added that “should IGIS Asset Management continue attempts to force a sale following actions that undermine trust in the partnership, Shinsegae Property will consider all available options, including legal measures, as an investor.”
The company further stated that it plans to request its fund manager, Capstone Asset Management, to review all possible response measures, including a potential change of the collective investment manager for Centerfield.
Centerfield, completed in June 2021, is a landmark mixed-use complex located in the heart of Teheran-ro in Seoul’s Gangnam district, on the former site of the Renaissance Hotel. The development consists of two towers rising 35 and 36 stories, situated between Yeoksam and Seolleung stations on Seoul Subway Line 2, and houses office space, a hotel, food and beverage outlets, and lifestyle brands.
Shinsegae Property holds approximately a 50% stake in Centerfield through a private equity fund structure. The company has consistently opposed the sale, citing concerns that the transaction would run counter to investor interests, lacks sufficient justification for a sudden sale, and is being pushed forward unilaterally.
In response, IGIS Asset Management issued a statement asserting that the decision to sell was made responsibly following sufficient prior explanation and communication with beneficiaries. “We will proceed with the sale according to the planned procedures,” the firm said.
IGIS further emphasized that under Korea’s Capital Markets Act, asset managers are required to manage assets based on their independent judgment rather than investor directives. The firm argued that Shinsegae Property’s demand to halt the sale lacks reasonable grounds and constitutes undue interference with the asset manager’s inherent authority.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
