Hanwha REITs Announces Listing of Mega Office REIT... Entering KOSPI at End of March

Hanwha Financial Affiliates Secure Stability Through Long-Term Leasing
High Dividend Yield in the High 6% Range Annually

[Asia Economy Reporter Kwon Jae-hee] "Hanwha REITs will grow into a core REIT capable of leading the market based on stable office assets composed of tenants centered on large corporations and public institutions, along with Hanwha Group affiliates that have signed long-term lease contracts."

Park Seong-sun, Head of the REITs Business Division at Hanwha Asset Management, made this statement regarding future growth strategies at the Hanwha REITs IPO briefing held on the 2nd at the 63 Building in Yeouido, Seoul.

Hanwha REITs is a top-tier sponsor office REIT sponsored by Hanwha Life Insurance, holding office assets of Hanwha Financial affiliates including the Hanwha General Insurance Yeouido building and four Hanwha Life Insurance buildings in Seoul and the Gyeonggi area. The Hanwha General Insurance Yeouido building is located in the major downtown area YBD (Yeouido Business District), with an overall occupancy rate of 99.9% and a tenant ratio of 91.7% from Hanwha Group affiliates, making it a representative prime asset. As a top-tier sponsor REIT with a large group affiliate as the major shareholder, it has secured high reliability and stability.

The Hanwha Life Insurance buildings also serve as landmark office buildings in each region, attracting a large floating population and acting as hubs for regional financial operations. In particular, their location in major commercial districts and close proximity to nearby subway stations are considered strong advantages in terms of accessibility.

Hanwha REITs’ assets are leased by group affiliates occupying 68.2% of the leased area, among which some financial affiliates such as Hanwha Life and Hanwha General Insurance, who will newly lease after asset sales, have signed long-term lease contracts ranging from 5 to 7 years. In addition, tenants include large corporations and public institutions, resulting in low volatility.

Hanwha REITs aims for a dividend yield averaging about 6.85% over five years through semiannual dividends paid twice a year (April and October). This exceeds the dividend yields of similar listed REITs, which range from 4% to 5%. Even short-term holders from the March public offering until the dividend record date at the end of April can receive the full semiannual dividend.

Hanwha REITs received business approval from the Ministry of Land, Infrastructure and Transport last September, aiming for listing on the KOSPI market, and the effectiveness of the securities registration statement took effect on the 23rd of last month. The company is targeting a listing by the end of March.

The total number of shares offered by Hanwha REITs is 23.2 million, with a single public offering price of 5,000 KRW per share. The demand forecast for institutional investors will be conducted over two days from March 6 to 7, and the public subscription for general investors will take place from March 13 to 14. The company plans to raise approximately 116 billion KRW through this offering, with Hanwha Investment & Securities and Korea Investment & Securities jointly serving as lead underwriters.

Head Park emphasized, "To ensure sustainable growth after listing, we have secured the right of first refusal for Hanwha Group’s representative safe assets, and we will actively seek new assets as well. Since the government announced REITs improvement measures earlier this year, laying the groundwork for expanding the overall REITs market from a long-term perspective, Hanwha REITs will establish itself as a company leading the upward trend of the REITs market based on stable dividend yields unique to the company and sponsor support after listing."

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