Ssangyong Motor Sells Guro-dong Site for 180 Billion Won

[Asia Economy Reporter Kiho Sung] Ssangyong Motor has sold the site of its directly managed maintenance center, the Guro Maintenance Center. The sale price is 180 billion KRW.

On the 1st, Ssangyong Motor announced through the Financial Supervisory Service's electronic disclosure system that it sold the related site to PIA on the 29th of last month. This is part of financial restructuring and securing investment funds through the sale of non-core assets and other asset restructuring.

The sale target is the Seoul Service Center located in Guro-dong, Seoul, with a land area of 18,089㎡ (5,471 pyeong) and a building area of 16,355㎡ (4,947 pyeong).

The sale was conducted through a competitive bidding process, and the sale price is 180 billion KRW under a "sale and leaseback" condition, with payment expected to be completed by the end of June.

Since the 15th of last month, Ssangyong Motor sent bidding invitations to more than 20 companies including domestic and foreign asset management firms, securities companies, real estate developers, and construction companies, with 8 companies participating in the bidding. On the 25th, PIA was finally selected as the preferred negotiation partner, and the contract was made after internal approval procedures.

Ssangyong Motor emphasized that since the Seoul Service Center was sold under a lease condition, there will be no issues with customer services such as A/S, and they will make their best efforts to prepare alternatives for better customer satisfaction and service quality in the future.

Additionally, following the Busan Logistics Center, the sale of non-core assets for new funding is progressing smoothly, and this will accelerate the reorganization of the product lineup within the year through new car development and the launch of marketable models in preparation for market improvement after the COVID-19 situation.

Ssangyong Motor stated, "We are making our best efforts not only to resolve short-term liquidity issues through the ongoing management innovation plan and sale of non-core assets but also to seek cooperation plans with various stakeholders to secure the company's future competitiveness," adding, "We ask for national support and social interest so that Ssangyong Motor can overcome the current crisis and achieve management normalization."