Koramco Energy REITs Signs Business Agreement with MZ Seed Operating 'Paul Bassett'
Koramco Energy REITs to Review Gas Station Sites for Paul Bassett DT Branch Opening
[Asia Economy Reporter Kwangho Lee] Koramco Asset Trust announced on the 16th that ‘Koramco Energy REIT’ and ‘M’s Seed,’ which operates the coffee specialty store Paul Bassett, have signed a business agreement to expand the entry of ‘Paul Bassett DT stores’ at Koramco Energy REIT gas stations.
This business agreement centers on reviewing the introduction of Paul Bassett DT stores (Drive-Through) at all or part of the gas stations owned by Koramco Energy REIT and real estate assets to be acquired in the future.
Koramco Energy REIT aims to secure stable rental income, while M’s Seed can expand the Paul Bassett brand in verified commercial areas located along main roads, forming a win-win strategy.
In the F&B industry, the 'drive-through' is an increasingly spotlighted operational form. It is a method of purchasing food and beverages while remaining in the vehicle, and with the increase in domestic vehicle users, it has established itself as a new F&B culture.
Koramco Asset Trust, which manages 'Koramco Energy REITs,' and M's Seed, the operator of Paul Bassett, held a business agreement ceremony on the 16th.
According to related industries, DT stores are known to record sales about 40% higher than regular stores. A global F&B brand that has entered the domestic market announced that future additional openings will only consider DT stores, proving their profitability.
However, due to the nature of DT stores, which require easy vehicle access and proximity to main roads, selecting suitable sites is not easy. Therefore, expanding new DT stores is one of the challenges for F&B brands. This is why M’s Seed and Koramco Energy REIT joined forces.
From Koramco Energy REIT’s perspective, it is meaningful to concretize a mid- to long-term plan to develop owned gas stations into a mobility-retail platform. By preemptively securing a high-end coffee specialty brand like Paul Bassett, they can plan for facility upgrades and the introduction of related brands.
Prior to this agreement, Koramco Energy REIT and M’s Seed jointly carried out the ‘Paul Bassett Busan Daeyeon DT Store’ development project at the Busan Bugyeong Self Gas Station in July last year, and recently announced through a public disclosure that they will additionally develop Paul Bassett DT stores at ‘Yeongildae Self Gas Station’ and ‘Goejeong Jeil Self Gas Station.’
Koramco Energy REIT owns 166 gas stations at major bases nationwide. Recently, it has been pursuing a strategy to break away from the traditional gas station leasing model and establish its identity as a lifestyle infrastructure platform that integrates into customers’ lives based on vehicle-related businesses.
For example, they are diversifying their business into lifestyle-oriented leasing models by converting gas station sites into large home appliance stores and complex car wash towns, as well as introducing retail DT stores and mobility showrooms on idle gas station land.
Additionally, non-core gas stations were sold early, and the proceeds were used to purchase urban logistics centers. During the zero-interest rate period in the first half of last year, they proactively increased capital through a paid-in capital increase, earning a reputation as the most actively operating among the 21 listed REITs in Korea.
Junho Jeong, CEO of Koramco Asset Trust, said, “Starting with this business agreement, we will expand cooperation into various fields to establish Koramco Energy REIT as a lifestyle infrastructure platform. Koramco Energy REIT will become an advanced model of a listed REIT that continuously changes and grows through proactive management comparable to general companies.”
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