Staritz, a KOSPI-listed company, announced on the 12th that it has signed a strategic business agreement (MOU) with Cape Investment & Securities, an IB (corporate finance) specialized securities firm, to officially enter the NPL (non-performing loan) market.
Through this partnership, the two companies will establish a real estate institutional private equity fund (PEF) worth around 100 billion KRW and collaborate to maximize investment returns by securing high-quality assets with high normalization potential.
The institutional private equity fund raises capital from institutional investors such as financial companies for investment. The specific investment targets of the fund include distressed assets and competitive normal assets such as real estate investment projects that have been halted, unsold real estate, and real estate held by restructuring companies.
Cape Investment & Securities succeeded in improving its performance last year through proactive risk management, bond operation, and investment in unlisted companies, diversifying its revenue streams despite the crisis triggered by real estate project financing (PF).
A Staritz representative emphasized, “As development projects going into foreclosure have surged recently, there has been a clear movement to invest in undervalued assets. To respond proactively to the market, we have partnered with Cape Investment & Securities, an IB specialized securities firm.”
Staritz plans to actively participate in the business within the scope permitted by relevant laws, leveraging its capital contribution as a senior LP (liquidity provider), investment capabilities, development experience, and operational management know-how.
Staritz’s top priority this year is stable business growth and shareholder value return policy through diversification of its real estate portfolio. To this end, it will diversify its business portfolio, which has been concentrated on hotel leasing, into offices, data centers, special logistics, residential, and commercial facilities. Additionally, it plans to maximize investment profits through development projects by expanding its real estate development expertise.
With revenue diversification, dividend resources are also expected to increase. Staritz has been distributing over 90% of its distributable profits annually. In the past two years, Staritz’s dividend payout ratios reached 117.2% (2022) and 220.2% (2023). The dividend yields based on face value were 31.44% (2022) and 19.22% (2023).
A Staritz representative stated, “Through this collaboration with Cape Investment & Securities, we expect synergy effects such as expanding profits through solid NPL investments. If the REIT’s value rises and leads to high dividends, shareholders’ benefits will also increase.” He added, “We will continue to secure dividend resources based on business profits to maintain a high dividend policy for shareholders and build trust as a shareholder-friendly company.”
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