ABL Bio Buys Gangnam Office Building for 65 Billion KRW... "No Capital Increase"

ABL Bio, a specialist company in bispecific antibodies, announced on the 11th that it has acquired buildings and land in the Samseong-dong area of Gangnam-gu, Seoul, for the purpose of establishing a new headquarters.

Sanghoon Lee, CEO of ABL Bio
Photo by Chunhee Lee

The land acquired by ABL Bio for its new headquarters is a building located near Seonjeongneung, along Bongeunsa-ro. It is situated between Samseong Jungang Station and Seonjeongneung Station on Seoul Subway Line 9. The site covers 677.6㎡, with a building spanning from four basement floors to 12 above-ground floors, totaling a gross floor area of 6,221.65㎡.

The company explained that due to space constraints, it faced many limitations in fully leveraging its research and development (R&D) capabilities in line with its growth trajectory. Therefore, it decided to establish a new headquarters to build a foundation for mid- to long-term growth. They are reviewing remodeling plans to transform the space into one that can deliver high efficiency and synergy effects, with a plan to complete the headquarters relocation by the first half of 2025.

The purchase price is 65 billion KRW, with a down payment of 3 billion KRW made on the contract date and the remaining 62 billion KRW scheduled for payment by the end of next month. Regarding funding methods, the company emphasized that it will use "internal reserves and borrowings" and stated, “There will be no paid-in capital increase for the real estate acquisition.” A company representative said, “Even if the current rent expenses are converted into interest costs on borrowings, there will be no additional cash outflow, and if interest rates decline later, it could actually lead to cost savings,” adding, “We have carefully planned so that the company’s core R&D budget is not used while fully benefiting from the future increase in asset value.”

ABL Bio explained that due to a lack of leased space, some teams had to work dispersedly, causing communication and work inefficiencies, and that R&D also faced difficulties due to insufficient space for equipment and personnel allocation. However, with the establishment of the new headquarters, they expect to enjoy many advantages beyond synergy effects through communication and collaboration. First, they plan to design optimized experimental spaces tailored to the research purposes of non-clinical trials to maximize R&D capabilities aimed at accelerating clinical entry. They also expect to actively utilize their inherent chemistry, manufacturing, and quality control (CMC) capabilities to enable more proactive and effective process development and quality management, as well as reduce related outsourcing costs.

The company also pointed out significant advantages due to the location. It will be situated in the Gangnam area of Seoul, considered the most favorable place for talent acquisition, and is expected to benefit from asset value appreciation due to development prospects in Samseong-dong. Additionally, the location, which combines accessibility, infrastructure, and symbolic value, is anticipated to greatly contribute to enhancing corporate recognition.

Lee Sang-hoon, CEO of ABL Bio, said, “Through the new headquarters, we will secure the space and facilities necessary to strengthen R&D competitiveness at a global level,” adding, “We will focus on promoting new workspaces that enhance communication and maximize synergy effects.”

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