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Mirae Asset Global Investments seeks 1st REITs IPO in Q3

A promotional image of Gwanggyo Central Prugio City
A promotional image of Gwanggyo Central Prugio City
South Korea’s investment firm Mirae Asset Global Investments said Wednesday it is eyeing its first initial public offering for its real estate investment trust followed by a listing on the nation’s main bourse Kospi.

The REIT is designed to invest in a commercial space of the commercial-residential complex dubbed Gwanggyo Central Prugio City. The real estate asset is located in a planned city of Gwanggyo in Gyeonggi Province, located some 25 kilometers south of Seoul. The REIT is expected to hand out some 6 percent annual dividend return from the securitized real estate to its investors for 10 years.

Gwanggyo Central Prugio City is a 17-story building with eight underground levels. Its commercial part occupies five floors and four underground levels with 86,190 square meters of floor space. Mirae Asset said the area is valued at some 278 billion won ($228.3 million).

Mirae Asset said the REIT will buy more prime commercial properties such as office buildings, logistics warehouses and data centers, starting with the Gwanggyo properties.

“(The REIT) will grow with a diversified real estate portfolio after listing,” Choi Chang-hoon, head of real estate investment at Mirae Asset Global Investments, said in a release. “Both institutional investors and retail investors seeking a stable dividend yield will be offered decent investment solutions.”

This comes after the REIT by Mirae Asset acquired the asset from Koramco Asset Management in March. GS Retail is fully leasing the space for 165.7 billion won until 2035.

The REIT gained regulatory approval from the Land Ministry in February.

By Son Ji-hyoung (