Shinhan Asset Management Invests 60.5 Billion KRW in Kamco Fund's Second Business Site

by Ryu Hyunseok

Pubilshed 20 May.2024 09:19(KST)

Shinhan Asset Management announced on the 20th that it will invest 60.5 billion KRW in the Mapo Dohwa-dong project site through the Korea Asset Management Corporation’s ‘PF Normalization Support Fund.’ This is a case of investment from the 235 billion KRW ‘PF Normalization Support Fund’ established to normalize PF project sites, and it is the second case following the acquisition of the 50 billion KRW Samboo Building near Hoehyeon Station in September last year.

Shinhan Asset Management’s second normalization case is the Mapo District 1, Zone 58-2 urban maintenance-type redevelopment project. Although the previous developer completed permits for the residential sales project in 2022, the conversion to the main PF was delayed even after the loan maturity extension in 2023. The loan maturity came due again in June this year, but as the project owner was unable to inject additional funds and the loan extension became uncertain, the project site proceeded with asset sales.

Accordingly, the Shinhan PF Normalization Fund will fully acquire the existing bridge loan claims from Nonghyup and Suhyup Bank, eliminating the burden of loan maturity extension, and will establish a project finance company (PFV) next month to partially raise additional funds and purchase the assets.

With this investment, Shinhan Asset Management is one of the five entrusted operators selected by KAMCO for the ‘Real Estate PF Project Site Normalization Support Fund,’ and through this investment, it has consumed half of the fund, showing the fastest consumption rate. Not only purchasing non-performing loans through the PF Normalization Fund, but also establishing subordinate investment entities to promote development, it has once again demonstrated excellent management capabilities by contributing to the expansion of urban residential supply through practical normalization.

Kim Heesong, Head of Alternative Investments at Shinhan Asset Management, stated, “Shinhan Asset Management is the second case to establish a subordinate investment entity and normalize through the KAMCO PF Normalization Support Fund, showing a 50% consumption rate and serving as a model for PF normalization support.” He added, “The Shinhan PF Normalization Support Fund will continue to seek projects that align with the purpose of normalizing the PF market and expand normalization support by applying various support methods.”