Aegis Asset Management is negotiating the sale of the Homeplus Yeongdeungpo store with a transaction closing targeted for the end of this month, as a 580 billion won loan tied to the property approaches its maturity date on next month's 5th. KB Securities consortium has been selected as the preferred bidder for the site acquisition and development project, which is expected to include approximately 500 residential units. The loan, which was extended by one year last year, is secured by four Homeplus stores including Yeongdeungpo, Geumcheon, Dongsuwon, and Centum City locations. The transaction has drawn attention as it coincides with the loan maturity and follows the Seoul Rehabilitation Court's decision the previous day to extend Homeplus's rehabilitation procedure deadline to September 4.
Aegis Asset Management Targets End-of-Month Transaction Closing for Yeongdeungpo Store
According to the financial investment industry on the 22nd, Aegis Asset Management is proceeding with negotiations to complete the Homeplus Yeongdeungpo store sale procedure by the end of this month. KB Securities consortium is currently selected as the preferred negotiating party for site acquisition and development projects. The Yeongdeungpo store is located at 42 Dangsan-ro, Yeongdeungpo-gu, Seoul (Munrae-dong 3-ga 55-3), directly in front of Mullae Station on subway line 2. A residential development project of approximately 500 units is expected to be pursued in the future.
580 Billion Won Loan Secured by Four Homeplus Stores Matures Next Month 5th
The loan maturing on next month's 5th totals 580 billion won and was secured by four stores: Homeplus Yeongdeungpo, Geumcheon, Dongsuwon, and Busan Centum City. These assets are included in the 'Aegis KORIF Private Real Estate Investment Trust No. 13' managed by Aegis Asset Management. The fund operates by purchasing stores, leasing them to Homeplus, and distributing dividends to investors using rental income as the source. In 2022, investment consulting firm GMEI Korea acquired these stores for approximately 940 billion won, resulting in the replacement of most beneficiaries. The loan was executed on August 5, 2022, under an agreement concluded in August 2022 by KB Kookmin Bank. The original maturity was in August last year, but the lender group decided to extend it by one year, pushing the maturity to next month's 5th. The loan is structured as a lump-sum repayment at maturity with early repayment possible. The interest rate is a floating rate linked to the 91-day Certificate of Deposit (CD) yield, with interest paid in advance every three months. Twelve financial institutions participated in this loan. Due to the structure where early termination of debt (EOD) occurs if even one institution does not agree to extend the maturity, lender group consultations were not easy during last year's loan maturity extension process.
Seoul Rehabilitation Court Extends Homeplus Rehabilitation Deadline to September 4
The previous day, the Seoul Rehabilitation Court's Rehabilitation Division 4 canceled the decision to abolish Homeplus's rehabilitation procedure and extended the deadline for approval of the rehabilitation plan to September 4. Market observers note that if the Yeongdeungpo store sale proceeds smoothly, cash inflows will increase the fund's loan repayment capacity, partially alleviating the financial sector's burden. KB Kookmin Bank, the trustee of the fund, is responsible for the custody and management of the stores. Kookmin Bank manages and leases investment trust assets according to the management instructions of Aegis Asset Management. The loan scale by tranche is △Tranche A-1 364 billion won △Tranche A-2 216 billion won, with identical collateral rights and repayment priority.
FAQ
What is the maturity date of the loan tied to Homeplus stores?
The 580 billion won loan secured by four Homeplus stores matures on next month's 5th. The loan was originally executed on August 5, 2022, and was extended by one year last year.
Which consortium was selected as the preferred bidder for the Homeplus Yeongdeungpo store?
KB Securities consortium was selected as the preferred negotiating party for the site acquisition and development project of the Homeplus Yeongdeungpo store, which is expected to include approximately 500 residential units.
What decision did the Seoul Rehabilitation Court make regarding Homeplus?
The Seoul Rehabilitation Court's Rehabilitation Division 4 canceled the decision to abolish Homeplus's rehabilitation procedure and extended the deadline for approval of the rehabilitation plan to September 4.
