SK Innovation E&S Sells Cowon Energy Service Site in Daechi-dong, Seoul for 505 Billion Won
Site Sale to Be Completed by December
Part of SK's Portfolio Rebalancing Efforts
Cowon Energy Service, a city gas subsidiary of SK Innovation E&S, is selling its headquarters building and land in Daechi-dong, Gangnam-gu, Seoul for 505 billion won.
SK Innovation headquarters located in SK Seorin Building, Jongno-gu, Seoul. Photo by Kang Jinhyung
View original imageOn August 7, Cowon Energy Service announced that it would dispose of two parcels of land, including 27-1 Daechi-dong, Gangnam-gu, Seoul, along with the above-ground building, to NH Investment & Securities, Korea Land & Housing Trust, and Hoban Construction. The sale includes 48,452 square meters of land and 9,017.01 square meters of building space, with a total transaction value of 505 billion won.
SK Innovation E&S has been working on the sale of this property since last year. In a competitive bidding process held in early July, a consortium of NH Investment & Securities, Korea Land & Housing Trust, and Hoban Construction was selected as the preferred negotiating party. After receiving approval from the Cowon Energy Service board of directors, a binding memorandum of understanding (MOU) was signed. SK Innovation E&S plans to sign a final sales contract with the consortium by September 30 and complete the transfer of ownership and related procedures by December 5.
This land sale is interpreted as part of SK Innovation's portfolio rebalancing (business restructuring) efforts. SK Innovation previously announced plans to stabilize its financial structure and strengthen future growth by reducing borrowings by more than 1.5 trillion won within this year through the sale and securitization of non-core assets. The site is included in Seoul City's Tancheon confluence development project and has been under consideration for development for over 15 years. It is evaluated as having high development value due to its proximity to popular school districts in Gangnam-gu and the abundance of surrounding infrastructure.
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An SK Innovation E&S official stated, "The sale of the Cowon Energy Service site is part of our asset efficiency efforts through the sale of non-core assets."
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