Koramco to Finalize 'Hyundai Motor REIT' Deal in First Half... "Over 7% Dividend Yield for Preferred Shares"

80% of REIT Underlying Assets Located in the Seoul Metropolitan Area
Hyundai Motor Signs Long-Term Master Lease Agreements

Koramco Asset Trust announced on March 18 that it has completed the recruitment of investors for a securitized REIT based on Hyundai Motor Company's business hub real estate, and the transaction is expected to be finalized within the first half of this year. For preferred shares, a dividend yield of over 7% per annum has been secured, and this investor recruitment is expected to be fully completed as early as early April.

This project is not simply an asset securitization, but also supports Hyundai Motor Company's funding for future new growth businesses. The portfolio is structured so that approximately 80% of the total asset value is concentrated in the Seoul metropolitan area, and with Hyundai Motor Company's long-term master lease structure, both stability and profitability have been secured.

The underlying assets included in this REIT consist of Hyundai Motor Company's domestic sales network and branding hubs. With Hyundai Motor Company entering into long-term master lease agreements for all of the underlying assets, vacancy risk has been eliminated and stable cash flow has been secured. The inclusion of large business sites in Seoul and Busan, which have high potential for future development, allows investors to expect not only stable dividend income based on rental income, but also the possibility of long-term asset value appreciation.

Koramco restricted participation from institutional investors relying on short-term capital or securities companies participating for capital rotation purposes in this project. Instead, it selectively offered participation opportunities to institutional investors seeking long-term investment destinations based on their own capital.

In addition, based on the strengths of the asset portfolio and the stable investment structure, a dividend yield of over 7% per annum for preferred shares has been secured. Based on this, Koramco successfully brought in Korea Investment & Securities as the anchor investor, leading the direction of the investment.

Kim Cheolgyu, Head of the REITs Division at Koramco Asset Trust, stated, "What is notable about this deal is the high return structure created by combining the stability of a top-tier sponsor with business hub assets in the metropolitan area. It is significant in that we designed the structure together with investors who pursue long-term mutual growth rather than short-term profits."

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