NH REITs Asset Management "Achieving 1 Trillion KRW in Assets Under Management by 2025"... Listing on the 18th of Next Month

Increase Profitability with Core Plus Strategy
Reduce Vacancy Rates and Ensure Tenant Stability

[Asia Economy Reporter Minji Lee] “We will secure a stable source of operating income through an Initial Public Offering (IPO) to enhance the value of our assets and expand our assets under management to 1 trillion KRW by 2025.”

On the 28th, Cheolsoo Seo, CEO of NH All One REITs, stated this during an online IPO briefing. NH All One REITs is a physical multi-sector REIT investing in various types of core-plus assets. The core-plus strategy is characterized by investing in stable assets while accepting some risk, focusing on whether the value can increase in the future.

Its main assets include ▲ Bundang Square ▲ A-One Tower Dangsan ▲ A-One Tower Ingye ▲ Doji Logistics Center. It is notable for incorporating office spaces, which are key commercial real estate, and logistics real estate, which is rapidly growing due to the ‘untact’ (contactless) trend, in a portfolio format. Additionally, NH All One REITs is a physical parent REIT that holds 100% of the physical asset Bundang Square and the shares of the child REIT, allowing investors to simultaneously enjoy the portfolio effect of investing in the assets held by the child REIT.

Exterior view of Doji Logistics Center

NH All One REITs has also secured stable tenants. Bundang Square currently has a 100% occupancy rate and is used by Line Plus, a global mobile platform company affiliated with Naver, with a lease extension contract signed to ensure high lease stability. A-One Tower Dangsan is used as the headquarters building by Samsung Life Service, the anchor tenant. A-One Tower Ingye is an office building with high-quality tenants such as Samsung Life, NongHyup Bank, and the Ministry of Employment and Labor. The Doji Logistics Center in Icheon has been used continuously since completion by Dongwon Loex, a logistics company of the Dongwon Group, and Hanaro TNS, a logistics agency for Samsung Electronics.

After listing on the KOSPI, NH All One REITs plans to absorb lease and development demands from affiliates and leap forward as a REIT growing together with NongHyup. By actively utilizing the real estate synergy between NongHyup Group’s financial and non-financial sectors, it aims to secure growth potential, achieve assets under management (AUM) of 1 trillion KRW within three years, and expand investment sectors.

After incorporating new assets, the portfolio by sector will be adjusted to strategically buy and sell assets according to the real estate market conditions. The strategy is to purchase additional undervalued assets while selling assets whose value appreciation has been completed, maintaining portfolio size and distributing the capital gains generated from sales as dividends.

Jong-eun Lee, Head of NH NongHyup REITs Management, said, “By combining NH NongHyup REITs Management’s professional asset management with NongHyup Group’s synergy, we will enhance the profitability, stability, and growth potential of assets under management to improve the intrinsic value of NH All One REITs,” adding, “We will evolve beyond real estate investment to build an industrial ecosystem and become the No.1 growth-oriented multi-sector public REIT leading new value.”