Koramco Energy REITs Sells Regional Gas Stations to Focus on Metropolitan Area Development

[Asia Economy Reporter Hwang Yoon-joo] Koramco Asset Trust is selling local gas stations and focusing on development in the metropolitan area.

Koramco Asset Trust announced on the 30th that Koramco Energy Plus REIT (Koramco Energy REIT) will sell 12 non-core gas stations, including Nakdong-ro Gas Station in Busan and Joyang Gas Station in Jecheon, and use the proceeds for repurposing gas stations in the metropolitan area and major asset mixed-use developments.

Koramco Energy REIT is a listed REIT operating 170 gas stations and 2 logistics centers located at key nationwide hubs, distributing dividends with a yield in the 6% range to investors. The gas stations are operated by Hyundai Oilbank, and e-commerce company Coupang and others lease the logistics centers.

Last year, Koramco Energy REIT also sold 17 local gas stations, achieving a dividend yield of 10.1%, significantly exceeding its target return, and an annual stock price increase of about 35%, ranking first in total return among domestic listed REITs.

Koramco Asset Trust stated that by listing Koramco Energy REIT, it aims to platformize gas station sites and maximize land potential by linking with various heterogeneous industries. In fact, Koramco Asset Trust has repurposed Asan Punggi self-service gas station and Busan Dongnae gas station into large home appliance stores such as LG Hi Plaza, and is also promoting the development of a complex facility combining electric vehicle charging stations and retail facilities at a gas station in Siheung.

Additionally, the regional portfolio of assets has shifted, with the proportion of local gas stations decreasing from 50% at the time of listing to about 25% currently, while the proportion of metropolitan area assets has steadily increased, enhancing competitiveness in terms of real estate value.

Yoon Jang-ho, Head of Koramco Asset Trust, said, "This gas station sale is a portfolio restructuring to strengthen Koramco Energy REIT’s identity as a land platform," adding, "Although the listed REIT market has recently shown weakness, we will strengthen Koramco Energy REIT’s unique competitiveness to create new upward momentum."

Meanwhile, the sale of Koramco Energy REIT gas stations will be conducted through a general competitive bidding process until August 31, and detailed information can be found on the Koramco Energy REIT website.