Alpha Holdings "Ownership Transfer Registration Claim Lawsuit Does Not Affect Corporate Value"

[Asia Economy Reporter Jang Hyowon] Alpha Holdings stated on the 21st that the ownership transfer registration claim lawsuit disclosed yesterday is not an issue that affects the company's corporate value or causes company funds to be leaked externally.

The lawsuit was filed by SPMC with the purpose of acquiring Alpha Holdings' stake in the Pangyo real estate for approximately 29.9 billion KRW. Alpha Holdings explained, "The lawsuit arose because SPMC proposed a purchase price that was significantly lower than the market price in the Pangyo area, and we did not proceed with the sale to SPMC."

The Pangyo Technovalley area where Alpha Holdings owns real estate has seen a surge in demand for offices and company buildings for several years, causing real estate prices to skyrocket recently.

In fact, in April, Korea Land Trust acquired Pangyo H Square at about 26.9 million KRW per pyeong, totaling 694 billion KRW. Currently, real estate in this area is traded at around 25 to 26 million KRW per pyeong, and due to a shortage of listings, properties are sold immediately upon being put on the market.

According to the global comprehensive real estate services company ‘JLL’, the Pangyo area has recorded vacancy rates in the 0% range since 2017 due to increased demand for offices from IT companies.

An Alpha Holdings official stated, "Earlier this year, we received an offer from an asset management company to acquire our Pangyo real estate at about 25 million KRW per pyeong," and added, "SPMC proposed a purchase price of about 18 million KRW per pyeong, so the conditions did not match, and we did not proceed with the sale."

He continued, "This lawsuit does not damage our corporate value at all. On the contrary, we plan to take this opportunity to sell the asset at its full value and expand investments in our core business sectors, such as artificial intelligence (AI) semiconductors, which we have been promoting for several years."