[Asia Economy Reporter Ji-hwan Park] Aegis Asset Management announced on the 19th that it plans to purchase a single-building apartment located in Samseong-dong, Gangnam-gu last month through a fund and proceed with remodeling. The purchased building is the 'Samseong World Tower' located at 408 Hakdong-ro, Gangnam-gu, consisting of a total of 46 households.
The individual who owned the apartment directly developed and owned the building. Tenants have been residing since 1997, and it has been operated as rental housing. Aegis explained that this case is meaningful in that it transforms an aging standalone apartment into a high-quality residential facility through remodeling.
Aegis Asset Management, the largest asset management company in Korea, has enhanced value in various commercial real estate such as offices and retail based on real estate expertise and asset management know-how. Recently, it has devised a strategy to remodel aging offices, hotels, and residential facilities and supply them as new construction products. Accordingly, it plans to continuously supply new housing by remodeling apartments that have been outdated for over 20 years.
An Aegis Asset Management official explained, "With no new housing sites available in Seoul, purchasing and remodeling aging buildings through real estate funds invested by institutional investors to supply new housing can be a good alternative for the market."
The official added, "However, the claim that this investment method is a 'private equity fund for the purpose of avoiding investment regulations,' which was raised by some, is not true as it is subject to the same tax treatment as general corporations."
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