SK Group Seeks IPO for REIT Within This Year (The Korea Times)

March 5, 2021 – SK Group plans to list its real estate investment trust (REIT) on the Korean stock market sometime within this year, drawing investors’ attention whether the initial public offering (IPO) of the energy-telecom conglomerate’s REIT could reignite the market’s interest in real estate funds.

According to industry officials, SK selected Korea Investment & Securities recently as the lead manager for the IPO, aiming to complete the process this year. The land ministry is expected to give the green light to the move later this month. 

SK Group’s REIT includes the conglomerate’s major assets such as Seorin Building in central Seoul. The 38-story building has been used as the group’s headquarters for the past 20 years since opening in 1999. 

It was sold to Bank of America-Merrill Lynch in 2005 for 450 billion won ($400 million) to raise capital to acquire what became now SK Incheon Petrochem. The building was later sold to Hana Alternative Asset Management in 2011 for 550 billion won, and SK plans to repurchase it soon. The current price for the building is estimated at 990 billion won. 

“Seorin Building is highly likely to be the first asset to be included by SK REIT, as the building is connected with the group’s history, and we are hoping to repurchase it,” an official from SK said. 

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