An exterior view of Doosan Tower (Herald DB)
Debt-ridden Doosan Group is in talks to sell its real estate asset Doosan Tower to Mastern Investment Management for roughly 700 billion won ($572.3 million), according to industry sources.
Doosan and Mastern are said to be at the final stage to confirm the price of the commercial building located in Seoul, which the troubled conglomerate has been using as the headquarters of its holding company for over two decades. Doosan looks to sell the asset and lease it back from the proposed buyer Mastern, according to a source.
Located at the center of Dongdaemun Shopping Complex in eastern Seoul, Doosan Tower is a 34-story high landmark with seven basement levels, with 122,630 square-meter floor space.
Doosan and Mastern could not be immediately reached for comment.
Once the transaction is complete, Doosan Tower is expected to become the first asset to be sold since its creditors including the Korea Development Bank approved the group’s self-restructuring plan in April.
Under the plan, Doosan vowed to secure some 3 trillion won to salvage its key subsidiary Doosan Heavy Industries & Construction, laden with debt and suffering a declining revenue, in exchange for the creditors’ bailout. Doosan Solus and Doosan Fuel Cell are other assets considered to be up for sale.
By Son Ji-hyoung (email@example.com