Lotte Holdings and Wellfood Change Ownership to Home Shopping
Lotte Homeshopping (corporate name Woori Homeshopping) is moving out of its rented space and purchasing the current Yangpyeong-dong office building and land where it is located. The original owners were Lotte Corporation and Lotte Wellfood (formerly Lotte Confectionery), but as the building usage increased, it is known that Lotte Homeshopping decided to buy the building.
According to Lotte Homeshopping on the 28th, it announced through a public disclosure the day before that it will purchase the land and building of the Yangpyeong office located in Yangpyeong-dong 5-ga, Yeongdeungpo-gu, Seoul, from Lotte Corporation and Lotte Wellfood. The transaction amounts are 131.7 billion KRW and 72.1 billion KRW respectively, totaling 203.8 billion KRW. The real estate is divided between Lotte Corporation (64.6%) and Lotte Wellfood (35.4%), so Lotte Homeshopping had been renting the building for a long time. They had a contract to rent the building until February 2030 with an annual rent of about 5 billion KRW, but suddenly decided to purchase the building.
This contract aims to improve the working environment by securing the office building. It also reflects the intention to reduce annual rental costs and gain profits from future increases in the building's value.
The Yangpyeong-dong office was previously 100% owned by Lotte Wellfood. During the establishment of Lotte Corporation in 2017, a spin-off occurred, and the ownership shares were divided between Lotte Corporation and Lotte Wellfood. Regarding the floors currently in use, Lotte Homeshopping occupies floors 1 to 12, and Lotte Wellfood uses floors 13 to 19. Starting from September this year, the roles will reverse, and Lotte Wellfood will rent the building.
Meanwhile, as of the end of last year, Lotte Homeshopping's cash and cash equivalents stood at approximately 280 billion KRW.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
