Mirae Asset Global Investments' 1st REIT to Pursue KOSPI Listing in Second Half of Year

The Largest Urban Outlet in Gwanggyo New Town... Target Dividend Yield Over 6% Average for 10 Years

[Asia Economy Reporter Minwoo Lee] Mirae Asset Global Investments is set to list its first REITs (Real Estate Investment Trust) on the Korea Exchange.

Mirae Asset Global Investments announced on the 3rd that it plans to proceed with the initial public offering (IPO) of Mirae Asset MAPS No.1 Trust Management Real Estate Investment Company (MAPS No.1 REIT) within the third quarter.

MAPS No.1 REIT is a product investing in an urban outlet located in Gwanggyo New Town, Suwon-si, Gyeonggi-do, consisting of 4 basement floors and 5 above-ground floors. It is near Gwanggyo Jungang Station on the Shinbundang Line and secures a substantial hinterland demand of approximately 1.6 million people from Gwanggyo New Town, the old downtown area of Suwon, and adjacent densely populated residential areas such as Suji and Bundang. Large-scale office facilities such as Samsung Electronics’ Suwon, Hwaseong, and Giheung plants, Gwanggyo Techno Valley, and the Legal Town are concentrated nearby, enabling the securing of a high-quality demand base.

GS Retail has signed a master lease agreement as the tenant for the entire commercial facility until 2035. The asset size of the property is approximately KRW 278 billion, and the target dividend yield is evaluated as a stable cash-generating prime commercial real estate with an average of over 6% for 10 years. Lotte Shopping, which operates Lotte Outlet and Lotte Cinema, subleases the property; however, the fixed rent is received from the tenant GS Retail independently of the subtenant’s sales-linked sublease fee, minimizing market risk.

Choi Chang-hoon, Head of the Real Estate Division at Mirae Asset Global Investments, said, "Starting with the urban outlet in Gwanggyo New Town, MAPS No.1 REIT will grow into a large-scale REIT by incorporating new high-growth prime commercial real estate assets such as offices, logistics centers, and data centers after listing, building a diversified real estate portfolio." He added, "We will provide investment solutions not only to institutional investors but also to individual investors seeking stable dividends."