ABL Life Insurance sent requests for proposals to major advisory firms recently to select a sale advisor for its Yeouido headquarters, ABL Yeouido Tower, according to investment banking industry sources on July 9. The company plans to hold presentations on July 10 and finalize the sale advisor this month. The sale is part of high-intensity financial restructuring following Woori Financial Group's acquisition. ABL Life Insurance's solvency ratio (K-ICS) before transitional measures stood at 118.8% as of the end of last year, below the 130% level recommended by financial authorities.
ABL Yeouido Tower Building Specifications and Estimated Value
ABL Yeouido Tower is located at 147 Uisadang-daero, Yeongdeungpo-gu, Seoul, a five-minute walk from Yeouido Station and a three-minute walk from Saetgang Station. The building was completed in 1998 and has 23 floors above ground and 8 basement levels. The total floor area is 39,457 square meters (11,936 pyeong). Industry sources expect the building to trade at around 30 million won per pyeong, resulting in a transaction value of approximately 350 billion won. The value could rise to as much as 400 billion won if bidding competition intensifies.
Woori Financial Group Completed Acquisition in July Last Year
Woori Financial Group completed the acquisition of Dongyang Life and ABL Life Insurance in July last year. The group is pursuing integration of Dongyang Life and ABL Life Insurance through a stock exchange. Woori Financial launched a financial diagnosis task force (TF) directly under the Chief Financial Officer (CFO) after the acquisition to conduct comprehensive reviews of assets and liabilities. The integrated company will use a unified headquarters, necessitating the disposal of existing buildings. An investment banking industry official stated that ABL Life Insurance's intention to sell the building is very strong and that the sale is expected to proceed within the year.
Dongyang Life Selling Nine Assets Including Seoul Jongno Headquarters
Dongyang Life is also selling nine assets including its Seoul Jongno headquarters. The assets include the Jongno branch in Changsin-dong Seoul, the Bundang branch in Seongnam Gyeonggi, and the Ilsan branch in Goyang. All are small to medium-sized buildings with total floor areas of 7,000 to 8,000 square meters. The total value of the nine assets is estimated at approximately 200 billion won.
FAQ
What is ABL Life Insurance selling?
ABL Life Insurance is selling its Yeouido headquarters building, ABL Yeouido Tower, located at 147 Uisadang-daero, Yeongdeungpo-gu, Seoul. The building was completed in 1998 and has a total floor area of 39,457 square meters.
Why is ABL Life Insurance selling its headquarters?
The sale is part of financial restructuring following Woori Financial Group's acquisition. ABL Life Insurance's K-ICS ratio stood at 118.8% as of the end of last year, below the 130% regulatory recommendation. Additionally, the integration with Dongyang Life requires a unified headquarters, making the existing building redundant.
When will ABL Life Insurance select a sale advisor?
ABL Life Insurance plans to hold presentations on July 10 and finalize the sale advisor this month, according to investment banking industry sources on July 9.
