Emart Sells Gayang Branch and Namyangju Land... Secures 757 Billion Won in Funds (Comprehensive)

E-mart store exterior.

[Asia Economy Reporter Kim Yuri] Emart is raising approximately 757 billion KRW through real estate sales. This decision aims to secure investment funds for mergers and acquisitions (M&A) and new business initiatives, as well as to strengthen financial soundness. Industry insiders expect that the funds secured from this sale will be used in bidding for eBay Korea and Yogiyo acquisitions.

On the 13th, Emart announced that it will sell the land and building of Emart Gayang Branch in Gangseo-gu, Seoul, valued at 682 billion KRW, to a consortium led by Hyundai Construction. The sale is expected to be completed by the 1st of next month, with the condition that Emart will lease and operate the property for 12 months, after which the Hyundai Construction consortium will redevelop the building and Emart will re-enter through partial leasing. An Emart official stated, "The new Gayang branch, acquired through leasing, will be a more compact space than the current one, expanding fresh food sections and securing key tenants such as popular restaurants, presenting an experiential store."

Shinsegae also transferred land in Byeollae-dong, Namyangju-si, Gyeonggi Province, to Shinsegae Property for 74.96 billion KRW. Shinsegae Property plans to finalize development plans in the future. Emart said, "This asset sale will secure financial soundness and provide funds for new business investments."

Meanwhile, Emart has been actively engaging in asset securitization recently, including this sale. In March, it sold land in Magok-dong, Gangseo-gu, Seoul, for 850 billion KRW and signed a lease contract for Emart Traders to occupy the site. Previously, in November last year, it sold 13 stores to a private equity fund for about 950 billion KRW and then leased them back. An Emart official said, "These efforts are being made for efficient asset management and reallocation."

Industry insiders believe that the funds will be used for M&A and new business investments to preempt the rapidly changing distribution market trends, such as the rapid growth of the online market. Shinsegae Group has shown interest in bidding for eBay Korea and Yogiyo acquisitions.