Seobutendi Rushes Ritz Establishment... Plans July IPO

A panoramic view of Dragon City Hotel in Yongsan-gu, Seoul.

[Asia Economy Reporter Choi Dong-hyun] Seobut TND is accelerating the establishment of a publicly offered listed REIT.

According to the industry on the 23rd, Seobut TND signed a business agreement with Shinhan REITs Management on December 16 last year and completed the establishment of the corporation on the 2nd of this month. The REIT is named Shinhan Seobut TND Trust Management Real Estate Investment Company (hereinafter Shinhan Seobut TND REIT) and aims to be listed in July. It plans to apply for REIT business approval from the Ministry of Land, Infrastructure and Transport by February.

Shinhan Seobut TND REIT plans to include Seoul Dragon City Hotel, which has about 1,700 rooms among Seobut TND's assets, and Square One, a complex shopping mall located in Yeonsu-gu, Incheon (total floor area 169,074㎡). In particular, the Yongsan Station area where Seoul Dragon City is located is a region with high growth potential due to large-scale development plans. They are reviewing a phased inclusion plan in line with the growth speed of the REIT in the future.

In addition, Seobut TND plans to play a leading role in continuously growing the REIT by not only developing the sites it owns besides Seoul Dragon City and Square One and including them in the REIT, but also acquiring and incorporating high-quality assets in the market. A Seobut TND official said, "Along with the successful listing of Shinhan Seobut TND REIT, stable growth is expected."