JR Global REIT with Market Cap of 230 Billion Won Files for Rehabilitation... Concerns Over Minority Shareholder Losses

JR Global REIT Files for Court Receivership After Failing to Repay 40 Billion Won
Korea Exchange Halts Trading... Concerns Rise for 28,000 Minority Shareholders

JR Global REIT, a real estate investment company listed on the KOSPI, has filed for corporate rehabilitation proceedings (court receivership) after failing to repay 40 billion won in bonds.

On April 28, JR Global REIT announced through a disclosure that it had filed for the commencement of rehabilitation proceedings with the Seoul Bankruptcy Court. The company cited "management normalization and the preservation of value as a going concern" as the reasons for the filing.

This marks the first time a domestically listed REIT has entered rehabilitation proceedings, and the application for commencement appears to be due to the company's inability to repay the principal and interest on its bonds.

JR Global REIT is a public overseas real estate REIT that was listed in 2020.

The company posted an apology on its website to shareholders and creditors, stating, "We apologize for the concerns caused by the application for commencement of rehabilitation proceedings."

On the previous day, after the close of the regular trading session, the Korea Exchange suspended trading of JR Global REIT shares and designated the company as an issue under management.

The share price, which was 2,800 won at the end of last year, has recently plunged, falling to 1,182 won as of the previous day. Its market capitalization stands at 233.3 billion won.

According to the securities industry, as of the end of last year, there were about 28,000 minority shareholders holding JR Global REIT shares, and it is known that they collectively own more than 70% of all shares.

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