Koramco Energy REITs, Drops 'Energy' to Embrace 'Life'

Paul Bassett DT Branch and EV Charging Station Followed by 'Co-Living'
Expansion of 'Lifestyle-Oriented' Business

Koramco Asset Trust announced on the 25th that it will expand the main revenue model of Koramco Energy REIT, known as the ‘gas station REIT,’ to ‘co-living (shared housing)’ following ‘F&B (food and beverage)’ and ‘urban logistics,’ which are closely connected to customers' lives. Accordingly, it has also formalized the development of a new name symbolizing a lifestyle-oriented REIT by removing the term ‘Energy,’ which referred to gas stations, from its corporate name.

Koramco Energy REIT is Asia’s first gas station-based value-add REIT, listed on the KOSPI in 2020 after Koramco Asset Trust acquired SK Networks’ gas station business division. Right after the REIT’s listing, Koramco Asset Trust announced ‘Vision 2025,’ stating plans to reorganize 187 gas stations scattered nationwide mainly around the metropolitan area and to integrate new ESG-based business models through collaboration with different industries.

Originally limited to 187 gas stations, the assets held by Koramco Energy REIT have diversified as of the end of this month, the third year since listing, to include 161 metropolitan area gas stations, four large electronics stores such as LG Hi-Plaza, two logistics centers, and numerous F&B outlets including Paul Bassett and McDonald’s. Additionally, last month, it partnered with LS E-Link, a subsidiary of LS Group, to develop two electric vehicle charging stations, establishing itself as the most diversified multi-sector REIT in Korea.

Koramco Asset Trust did not stop there and officially announced the new ‘Co-Living Project,’ which will be a turning point in transforming Koramco Energy REIT into a lifestyle-oriented REIT, entering the final stage of site selection. This is the first case of a listed REIT pursuing a co-living business.

Furthermore, to optimize the design and ensure stable operation of co-living facilities, Koramco is in discussions with multiple specialized co-living operators to explore concrete collaboration plans. Koramco aims to select an operator as early as the first half of the year and begin full-scale development in the second half.

Co-Living refers to a new form of shared housing where private spaces such as bedrooms and bathrooms are separated, while common areas like cafes, cinemas, spas, event rooms, training rooms, and rooftop gardens within the building are provided and freely shared. It particularly offers various hobby activities and participatory programs to encourage communication among residents, enhancing life satisfaction while maintaining privacy, which has gained strong popularity among young professionals.

Co-living has already established itself as a premium residential culture trend among young people overseas. Common, a leading co-living company in the U.S., operates upscale co-living houses targeting young professionals in 10 locations including New York, Washington DC, and San Francisco. In London, UK, ‘The Collective at Old Oak Common,’ the world’s largest shared housing facility with over 550 rooms, operates without vacancies.

In Korea, the co-living market is rapidly expanding, centered around real estate companies such as SK D&D and KT Estate, and co-living startups like MGRV (Mangrove) and Homes Company. Koramco Asset Trust also plans to enhance profitability by adding co-living to Koramco Energy REIT in line with this global trend.

Yoon Jang-ho, Vice President in charge of Koramco Energy REIT, said, “The ‘Vision 2025’ announced to improve the profitability and stability of Koramco Energy REIT is being achieved faster than planned, so it is time to consider the next step. Unlike other REITs, our REIT aims for sustainable growth like a general company, going beyond the limitations of gas stations to approach customers’ ‘lives’ and increase new value.”

Meanwhile, Koramco Energy REIT is reviewing a new corporate name symbolizing the REIT’s identity along with the full-scale launch of the co-living business. It plans to announce the name change and release an investor report containing the new vision as early as the first half of the year.