SH Corporation Launches Korea's First REIT to Promote Urban Regeneration Projects

[Asia Economy Reporter Donghyun Choi] A REITs (Real Estate Investment Trusts) product that pre-purchases facilities constructed through urban regeneration projects to promote private sector participation in urban regeneration will be launched for the first time in Korea.

Seoul Housing and Communities Corporation (SH Corporation) announced on the 25th that it will participate in the launch of the 'Seoul Urban Regeneration Space Support REITs,' which pre-purchases facilities created through urban regeneration projects in underdeveloped areas of Seoul, such as low-rise residential areas and declining commercial districts, and supplies them again to users at affordable prices to revitalize urban regeneration projects.

The newly launched Space Support REITs allows private businesses to pre-purchase facilities constructed or renovated through urban regeneration projects, reducing the initial financial burden for private companies participating in urban regeneration projects and securing sales channels for the facilities to be constructed.

The Space Support REITs will be capitalized with 10.8 billion KRW from SH Corporation and 25.2 billion KRW from the Housing and Urban Fund. Combining fund loans and private financing, it will operate on a scale of 180 billion KRW. SH Corporation plans to start pre-purchasing facilities constructed by private businesses through the Space Support REITs from the second half of this year.

SH Corporation expects that this Space Support REITs will induce private sector participation in urban regeneration and contribute to revitalizing declining commercial districts by supplying assets purchased by the REITs, such as key facilities and public commercial spaces, again at affordable prices.

Kim Seyong, President of SH Corporation, stated, "By establishing a new model for revitalizing urban regeneration, we will breathe new life into aging areas where improving residential environments has been difficult due to a lack of project feasibility. The Space Support REITs will promote private participation in Seoul's urban regeneration projects and utilize the purchased assets as key urban spaces to create jobs and realize spatial welfare."

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