Koramco Trust Accelerates Real Estate Development Business... Establishes Dedicated Headquarters

[Asia Economy Reporter Minji Lee] Coramco Asset Trust announced on the 9th that it has established a Development Business Division and will intensify its real estate development business through indirect investment.

The domestic real estate development market has grown with a structure where developers initiate PF (Project Financing) through credit extensions from construction companies or trust companies and then directly develop the projects. Recently, Coramco Asset Trust has expanded its investment scope from the traditional model of purchasing and managing existing tangible assets to a development business model where it acquires land assets and directly constructs buildings. This is because it can establish REITs, real estate funds, PFVs, etc., based on investment funds from various domestic and international investors, enabling the business to proceed without financial fluctuations.

As the number one REIT company, Coramco Asset Trust plans to integrate the know-how accumulated in development trust businesses such as selection of investment destinations, asset management, and operation?including loan-type and responsibility-for-completion types?to complete the value chain throughout the entire process from site selection to investment, construction management, and operation.

In this process, Coramco Asset Trust will guarantee transaction stability to sellers such as landowners and provide development expertise to various stakeholders wishing to participate in development projects. It also plans to offer total solutions for real estate development by assisting investors with insufficient capital in equity investments and safely presenting high-quality real estate to buyers (allottees).

Jung Hee-seok, head of the Development Business Division at Coramco Asset Trust, said, “We will consolidate the development business capabilities, which had been carried out by each department without a dedicated organization, into the Development Business Division to provide systematic solutions to investors. Coramco will expand its investment area through development projects alongside existing tangible asset investments, further solidifying its position as a leading real estate finance company.”

Coramco Asset Trust is a first-generation real estate finance company that introduced the REIT system to Korea in 2001 and has maintained the number one market share in the private REIT market for the past 20 years. It has mainly invested in tangible assets such as offices and retail through CR REITs (Corporate Restructuring REITs) and entrusted management REITs supporting corporate restructuring.

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