Aegis Asset Management Clarifies "Already Severed Equity Ties with Developer and GFI, No Profit Involved"

by Park Soyeon

Published 25 Apr.2023 10:10(KST)

Updated 25 Apr.2023 10:31(KST)

Active Clarification on Allegations of Preferential Work Allocation to a Specific Contractor in Magok CP4 Development Project
"No Direct Profit Taken by Former CEO's Family Company, Shares Sold at Face Value"

Aegis Asset Management actively clarified reports that a developer company invested in by the family company of the former CEO profited significantly from the Magok CP4 development project.

On the 25th, Dong-A Ilbo reported that GF Investment (GFI), where the family of former CEO Jo Gap-ju is the largest shareholder, profited from a prime development project through its affiliated real estate developer IRDV, raising concerns about conflicts of interest.

Regarding the report, Aegis Asset Management explained, "Upon confirmation with GFI, they have never received dividends from IRDV, and the IRDV shares held by GFI were all sold back to IRDV at face value in the first quarter of this year."

IRDV is a company that provides comprehensive services from initial real estate development investment, construction, to sales.

In 2020, the company formed a consortium with Meritz Securities, Taeyoung Construction, and Aegis Asset Management to develop the Magok CP4 block, owned by Emart Shinsegae, into a large-scale office and commercial district, and was selected as the preferred negotiator.

Aegis Asset Management Clarifies "Already Severed Equity Ties with Developer and GFI, No Profit Involved"

Subsequently, by successfully acquiring land and obtaining various permits, IRDV played a leading role in the successful establishment of the project finance vehicle (PFV) and succeeded in conditionally pre-selling to pension fund investors.

'Conditional pre-sale' means that the buyer agrees to purchase the property once development is completed according to certain conditions required by the buyer, such as building specifications and total development costs.

Aegis explained, "The fees paid in 2021 amounted to about 0.75% of the total development scale, and were paid by the PFV, whose shareholders include financial companies, through a board resolution, not by Aegis."

Aegis Asset Management added, "Although there was no legal conflict of interest upon review by GFI, to dispel unnecessary market misunderstandings, they explained the background of disposing of IRDV shares without any profit."

Aegis Asset Management Clarifies "Already Severed Equity Ties with Developer and GFI, No Profit Involved"

Active Clarification on Allegations of Preferential Work Allocation to a Specific Contractor in Magok CP4 Development Project"No Direct Profit Taken by Former CEO's Family Company, Shares Sold at Face Value"

Active Clarification on Allegations of Preferential Work Allocation to a Specific Contractor in Magok CP4 Development Project
"No Direct Profit Taken by Former CEO's Family Company, Shares Sold at Face Value"