[Funding] Hantosin Secures 790 Billion KRW Financing for Acquisition of Kakao Building 'H Square'

[Asia Economy Reporter Lim Jeong-su] Korea Land Trust has raised 790 billion KRW to acquire the ‘H Square (H Squeare)’ building in Bundang, Seongnam-si, Gyeonggi-do, where Kakao Group affiliates are located.

According to the investment banking (IB) industry on the 4th, the real estate investment company (REIT) ‘K-One No.15 Co., Ltd.’ established by Korea Land Trust recently raised a total of 790 billion KRW from a lending consortium composed of financial institutions including Shinhan Bank. The raised funds will be used to acquire the H Square building occupied by Kakao Group affiliates.

To enhance repayment stability, Korea Land Trust provided the land and buildings of the H Square building as collateral to the lending consortium. Based on collateral and repayment priority, the investment recruitment was completed by dividing into a senior loan of approximately 440 billion KRW and a mezzanine loan and equity securities of around 350 billion KRW.

H Square is an office building with 4 basement floors and 10 above-ground floors, with a total floor area of 85,140㎡, located at 235 and 231 Pangyo-yeok-ro, Seongnam-si, Gyeonggi-do. Three Kakao Group affiliates?Kakao, Kakao Games, and Kakao Pay?are long-term tenants (master lease) of the building.

Korea Land Trust participated in the bidding for the sale of H Square and decided to purchase the parts of the two buildings occupied by Kakao affiliates in April this year. The fund raising for acquisition was completed about two months after the successful bid.