'Domestic Listed Global REITs' Koramco Joins Following KB and Shinhan

[Asia Economy Reporter Park So-yeon] Koramco Asset Trust, the No. 1 company in the domestic REITs industry, is preparing to establish a global REITs based on overseas real estate assets and list it domestically. As major domestic financial companies such as KB Financial Group and Shinhan Financial Group are rushing to bundle overseas assets into REITs, competition is expected to become even fiercer with the participation of the industry leader.

According to the investment banking (IB) industry on the 31st, Koramco Asset Trust is preparing to establish a listed REITs focusing on overseas real estate such as logistics centers. A source from the IB industry said, "We are in the initial stages of establishing a listed REITs centered on overseas sectors," adding, "We are reviewing the deal pipeline that can be included."

Koramco owns three listed REITs. These include 'Koramco Energy Plus,' which is based on 187 directly operated gas stations nationwide acquired from SK Networks; 'Koramco The One REITs,' centered on office assets such as the Yeouido Hana Securities Building; and 'E-REITs KOKREP,' based on the top five stores of New Core Outlet operated by E-Land Retail. While existing listed REITs mainly consisted of domestic assets such as gas stations, offices, and retail, the upcoming REITs will be global REITs containing overseas logistics centers and offices.

This is interpreted as an expansion into overseas markets following analyses that the domestic asset-centered REITs market has reached saturation. Existing global REITs listed on the domestic stock market include JR Global REITs (Belgium Finance Tower), Mirae Asset Global REITs (three logistics centers in the United States), and Marston Premier REITs (France Crystal Park and Amazon logistics centers).

In addition, KB Asset Management plans to list KB Star REITs on the KOSPI market in October, which will be based on major global office buildings such as the North Galaxy Tower in Brussels, Belgium, and Samsung Europe HQ in London, UK. The North Galaxy Tower, a parent-subsidiary structured REITs, holds 100% equity securities, while Samsung Europe HQ is a REITs with a re-indirect investment structure holding 89% of the beneficiary certificates of the UK general private real estate investment trust.

Shinhan REITs Management is also preparing its first global REITs. The underlying assets consist of 400 properties in the North American region, structured as a re-indirect investment by purchasing shares of funds managed by leading global asset management companies. The REITs size is about 255 billion KRW, of which approximately half, 130 billion KRW, will be raised through a public offering.

An industry insider said, "Since the pool of domestic assets suitable for listed REITs is limited, interest in REITs centered on high-quality overseas assets continues to grow."