Integrated Operations Management Company Ido, Consecutive Increases in Asset Value of Managed Properties

Downtown Mega Office City Square Achieves Zero Vacancy Rate in 6 Months
Golf Course 'Club Divoeun' Sees 20% Revenue Growth in 1 Year
Positive IPO Outlook This Year... Corporate Value Expected to Exceed 300 Billion Won

Exterior of City Square Building

[Asia Economy Reporter Lim Jeong-su] Alternative investment asset integrated management (Operating & Management) platform company Ido has shown results in increasing customer asset value through value-add strategies for client investment assets. As corporate value rises, the scheduled initial public offering (IPO) this year is expected to gain momentum.

Ido announced on the 19th that it has reduced the vacancy rate of the office building "Seoul City Square," owned by alternative investment specialist Han River Asset Management, to 0%. It has been about six months since Ido took charge of comprehensive operations and management including leasing and asset management. Previously, City Square had been entirely vacant for about a year since leasing began.

City Square was developed by SK D&D, a real estate developer of SK Group, as the project developer. It was completed last July in the Seoul Euljiro downtown (CBD) area, with 7 basement floors to 20 above-ground floors and a total floor area of 38,000㎡ (approximately 11,600 pyeong). The asset was previously owned by the Hong Kong-based investment company Orion Partners. An Ido official stated, "Investors were very concerned due to the high vacancy rates of surrounding large office buildings, but we succeeded in eliminating vacancies in about six months."

Ido evaluated that investment for responsible management and differentiated comprehensive operational and management capabilities worked effectively. Unlike existing office management companies, Ido currently provides comprehensive services encompassing Proprietary Investment (PI), Property Management (PM), Leasing Management (LM), and Facility Management (FM). Upon taking over City Square, Ido realized responsible management for increasing client asset value by even proposing revenue compensation for office vacancies. Currently, the City Square building is also being used as Seoul City's second government office. Coffee shops, fitness centers, and restaurants are expected to complete move-in by the end of this month.

Ido's value-add strategy also yielded results in the golf course sector. Since May 2018, the operated golf course "CLUBD Boeun" saw sales increase by about 20% within a year. When Ido took over operations, the golf course was poorly rated due to incomplete course and clubhouse construction, lack of operational equipment, and shortage of professional staff.

However, Ido collaborated with financial companies to make bold facility investments, completed golf course construction, and improved services. By implementing responsible management including facility management, it has risen to become the top public golf course in the Chungbuk region. Other golf courses managed by Ido, "CLUBD Sokrisan" and "CLUBD Geumgang," also saw sales increase by about 15%.

Additionally, unusually for a private company, Ido has carried out modernization projects on environmental waste sites in the Incheon metropolitan area through PI investments. It is also realizing social value by establishing eco-friendly sites and automated systems for mixed construction waste to reduce fine dust.

Ido expects the increase in value of managed assets to be a positive factor for the IPO. An Ido official said, "The securities industry evaluated Ido's EBITDA before depreciation last year at 25 to 26 billion KRW," adding, "Applying the industry average EV/EBITDA multiple of 12 to 13 times, the corporate value could exceed 300 billion KRW."

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