JR Global REITs Obtains Ministry of Land's Business Approval... Aiming for Listing in First Half of This Year

Becoming the Nation's First Overseas Asset Investment Specialized Listed REIT

[Asia Economy Reporter Eunmo Koo] JR Investment Management announced on the 24th that JR Global Entrusted Management Real Estate Investment Company (JR Global REIT, the parent REIT), which is pursuing a public listing, has completed obtaining business approval from the Ministry of Land, Infrastructure and Transport following JR No. 26 Entrusted Management Real Estate Investment Company (JR No. 26 REIT, the subsidiary REIT).

JR No. 26 REIT received business approval at the end of last year, and with the parent REIT JR Global REIT now obtaining business approval, the company’s plan to list on the Korea Exchange has gained further momentum. JR Global REIT plans to proceed with an initial public offering (IPO) as soon as all preparations are complete, aiming to finalize the parent REIT’s listing on the Korea Exchange within the first half of this year. The lead underwriters for the listing are Meritz Securities and KB Securities.

Notably, JR Global REIT is a REIT specialized in overseas real estate investment, and upon completion of the listing, it will become the first globally listed REIT in Korea. The main investment property currently is the 'Finance Tower Complex' located in Brussels, Belgium, acquired by the subsidiary REIT. The funds raised through the listing will be used to invest in the subsidiary REIT’s equity. The asset size of this property is approximately 1.6 trillion KRW, and the tenants are the Belgian federal government agencies (Ministry of Finance, Ministry of Welfare, Ministry of Food Safety, etc.).

JR Global REIT’s strategy is to include high-quality assets with stable long-term leases by Belgian federal government institutions as its initial investment assets, aiming to achieve higher returns compared to other domestic listed REITs. In particular, the building is directly connected to Botanique subway station via a dedicated passage and is close to bus, tram, train, and air (airport) facilities, offering excellent public transportation accessibility within the city center. Additionally, large-scale development projects led by the federal government are underway in the surrounding area, raising expectations for future asset value appreciation. The target dividend yield is around 8%.

JR Global REIT plans to minimize investment risks and secure sustainable growth drivers by adding other prime assets in Belgium as well as in major advanced countries with strong growth and stability such as Germany and the Netherlands to its portfolio.

Kim Kwan-young, CEO of JR Investment Management, stated, "We are exploring various ways for small individual investors to have practical investment opportunities," adding, "We will maximize profitability through industry-leading investment and management expertise, thorough risk management, and capital gains from asset value appreciation. After listing, we will expand strategic investments in overseas prime assets and grow into a large global listed REIT."

Meanwhile, JR Investment Management began Korea’s first overseas asset investment REIT business in 2014 by acquiring the Stargate Building located in Tokyo, Japan. Since then, it has grown into a leading domestic asset management company with strengths in overseas asset investment by acquiring properties such as a logistics center in Kawagoe near Tokyo, Porta Tower in Vienna, Austria, the Landings Building in Dublin, Ireland, and the Cristalia Building in Paris, France.