SK REITs Launches IPO Process for 'SK Seorindong Building + 116 Gas Stations'

[Asia Economy Reporter Lim Jeong-su] SK REITs, which owns the SK Group headquarters building in Seorin-dong, Jongno, Seoul, and 116 SK Energy gas stations, announced on the 5th that it will officially begin the listing (IPO) process. The securities registration statement submitted to the Financial Supervisory Service on the 20th of last month came into effect from today.

According to the securities registration statement, SK REITs' public offering price is 5,000 KRW per share, with approximately 46.5 million shares offered. SK REITs plans to raise about 232.6 billion KRW through this public offering. Demand forecasting will be conducted over two days from the 23rd to the 24th for domestic and foreign institutional investors, followed by a three-day subscription period for general investors from August 30 to September 1.

The subscription volume for general investors is about 13.95 million shares, which is 30% of the total public offering volume. The lead underwriters are Samsung Securities and Korea Investment & Securities, with SK Securities serving as a co-manager. Hana Financial Investment is participating as part of the underwriting group.

In July, SK REITs completed the acquisition of the SK Seorin Building located in Seorin-dong, Jongno-gu, Seoul, and incorporated 100% of the shares of Clean Energy Trust Management Real Estate Investment Company (Clean Energy REITs). SK Group affiliates lease the properties on a triple net lease basis and pay rent to SK REITs, which in turn distributes dividends to shareholders every quarter.

From the perspective of SK Group affiliates, selling real estate assets to SK REITs allows for asset optimization while securing additional funds for growth investments. Investors can earn stable dividend income, making this a win-win business model beneficial to both SK affiliates and investors.

The SK Seorin Building, used as the headquarters by SK Group for over 20 years, houses SK Inc., SK Innovation affiliates, and SK E&S. Having recently undergone large-scale renovations, its value is expected to increase. Notably, major SK affiliates lease the building on a triple net basis, ensuring stability and high profitability even amid economic downturns.

SK REITs’ subsidiary REIT, Clean Energy REITs, has completed the purchase of land and buildings for 116 gas stations nationwide from SK Energy. Approximately 48% of these gas stations are located within the Seoul metropolitan area, and the assets consist of properties with high land utilization value. SK Energy is responsible for leasing all the acquired gas stations on a triple net lease basis.

SK REITs plans to implement quarterly dividends for the first time in the domestic REIT industry. As the only quarterly dividend REIT in Korea, it is expected to attract a large number of investors such as pension funds, retirement pensions, and individuals seeking regular and stable income.

Shin Do-cheol, CEO of SK REITs, stated, "We have established a structure that combines the stability of being a sponsored REIT by SK Group, the investment appeal of being the industry's first quarterly dividend REIT, and the ability to grow organically alongside SK Group." He added, "We will continuously incorporate assets linked to SK Group’s core businesses and grow into a global top-tier diversified REIT."

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