Aegis Asset Management Secures LEED Platinum for Taepyeong-ro Building's 'Green Premium'

Aegis Asset Management is adding an eco-friendly touch to its managed listed REITs. The plan is to lower borrowing costs and enhance dividend competitiveness by securing a Green Premium.

Aegis Asset Management's Aegis Value Plus REIT has acquired the highest LEED (Leadership in Energy and Environmental Design) certification, Platinum, for the Taepyeong-ro Building on Sejong-daero, Jung-gu, Seoul, which serves as its underlying asset.

LEED, developed by the U.S. Green Building Council (USGBC), is an internationally recognized eco-friendly building certification system. LEED certification levels are ranked from highest to lowest as Platinum, Gold, Silver, and Certification.

The certification received by the Taepyeong-ro Building is the latest version 'v4.0' and pertains to O+M (Operations and Maintenance) certification for existing building operations and maintenance. It evaluates eco-friendly performance based on actual operational records such as energy, water, waste usage, and recycling status.

In the LEED evaluation, the Taepyeong-ro Building scored highly in categories including ▲energy efficiency ▲indoor environment ▲location and public transportation accessibility ▲asset innovation.

This is the fourth time Aegis Asset Management has received LEED v4.0 O+M Platinum certification, following Auto Way Tower, Twin Tree Tower, and Signature Tower. Notably, Aegis Value Plus REIT, which invested in Twin Tree Tower and Taepyeong-ro Building, now holds LEED Platinum certification for all prime-grade (gross floor area over 33,000㎡) office buildings within Seoul’s central business district.

With this eco-friendly certification, Aegis Value Plus REIT plans to secure a Green Premium through issuing green bonds. The Green Premium refers to tangible and intangible benefits that economic agents can gain by participating in eco-friendly initiatives.

In particular, for listed REITs, it is expected that borrowing costs for underlying asset investments can be reduced through green bond issuance. According to the ‘Korean Green Bond Issuance Support Plan’ announced by the Ministry of Environment last February, large corporations can receive a 0.2 percentage point (p) interest rate support, while small and medium-sized enterprises can receive 0.4 p when issuing green bonds.

Additionally, Aegis Value Plus REIT is working with Samsung Electronics and Samwoo Architects & Engineers to build smart green offices and is planning to incorporate them as underlying assets. Through this, the REIT aims to increase its eco-friendly assets and enhance its sustainability capabilities.

An Aegis Asset Management official stated, “As the green bond fund size recently surpassed 2 trillion won, showing significant growth, investors should closely examine a REIT’s green bond financing capability. Replacing the borrowings secured by the fund’s beneficiary certificates, which hold Twin Tree Tower and Taepyeong-ro Building, with green bonds would positively strengthen dividend competitiveness.”