LH Launches Preferred Stock Offering for Goyang Samsong Housing Development REIT

Perspective view of Goyang Samsong Xi The Village (Photo by LH)

[Asia Economy Reporter Moon Jiwon] Korea Land and Housing Corporation (LH) announced on the 9th that it will conduct a public offering of 1.68 million shares (8.4 billion KRW), which is 30% of the total 5.6 million shares issued by Goyang Samsong Xi The Village Housing Trust Real Estate Investment Company (hereinafter Goyang Samsong REITs).

These are unlisted preferred shares offering an annual target return of 5.2%, structured with enhanced credit through the construction company's completion guarantee and LH's purchase commitment for unsold houses.

Goyang Samsong REITs was selected as a private offering project by a consortium of GS Construction and Cape Investment & Securities in 2018, and is constructing block-type detached houses, Samsong Xi The Village (432 units), in the Ogum-dong area within the Goyang Samsong land development project district.

In July last year, the first subscription for 418 units recorded a competition rate of 12.7 to 1, and the second subscription in November for 14 units recorded a competition rate of 133.7 to 1.

The subscription guide will be announced on the 10th, and subscriptions will be accepted from the 15th to the 17th. The stock allocation results are scheduled to be announced on the 21st.

An LH official said, "We aim to expand opportunities for the public to indirectly invest in real estate with small amounts by offering REIT shares to the general public," adding, "In the case of Goyang Samsong REITs, we expect that investors' principal and target dividends can be paid stably."

This content was produced with the assistance of AI translation services.