DS Networks Asset Management Searching for Buyers
Seeking Synergy Expansion with Mastern Asset Management After Selling Affiliate Management Company
[Asia Economy Reporter Lim Jeong-su] DS Networks, the leading private real estate development company in Korea, is selling its affiliated real estate asset management firm, DS Networks Asset Management. This move is interpreted as an effort to divest non-core assets amid the downturn in the real estate market, which has made development projects more challenging.
According to the investment banking (IB) industry on the 24th, DSN Holdings, the financial holding company of the DS Networks Group (DSN Group), has decided to sell DS Networks Asset Management and is currently in contact with potential buyers. An industry insider stated, "The sale price is estimated to be between 10 billion and 20 billion KRW," adding, "As far as I know, a preferred bidder has not yet been selected."
The DSN Group has grown centered around DS Networks, a private developer with annual sales reaching 1.8 trillion KRW. In the financial business sector, DSN Holdings serves as the holding company, owning DSN Investment, a new technology business operator, and DS Networks Asset Management, a real estate management firm. By owning both a developer and an asset management company, the group is recognized as one of the few comprehensive developers in Korea. The structure allows for synergy between the group's core development projects through the asset management company.
In this context, attention is focused on the background of the sale of the two pillars of the financial affiliates, including the asset management company. Related industries interpret this as a move to divest non-core assets due to difficulties in development projects caused by recent declines in real estate prices. It is also understood that the group has shifted its strategy to seek synergy with large external asset management firms rather than maintaining an affiliated real estate management company.
After selling the affiliated asset management company, DSN is expected to strengthen cooperation with Masterton Asset Management, Korea's largest real estate asset management firm, in development projects and other areas. DS Networks had previously acquired a stake in Masterton Asset Management and has been seeking synergy between development projects and asset management through this partnership. Additionally, DS Networks and Masterton Asset Management jointly established the U.S. local corporation, Masterton America.
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