'Shinsegae Starits' Files for October Business License... Starfield Hanam Securitization

Shinsegae Property Officially Enters REITs Market
Plans First Sponsor REIT... Aiming for Listing Next Year

Shinsegae Property Investment Management, a subsidiary of Shinsegae Property, announced on the 23rd that it plans to apply for the business license of 'Shinsegae Star REITs,' which is based on Starfield Hanam, in October.

Shinsegae Property Investment Management logo / Image provided by Shinsegae Property Investment Management

Shinsegae Property Investment Management obtained its establishment approval in December last year and is making its full-scale entry into the REITs market with this first business license application. The goal is to list (IPO) Shinsegae Star REITs next year.

The acquisition target of Shinsegae Star REITs is a 51% stake in Starfield Hanam held by Shinsegae Property. They plan to launch the first sponsor REIT based on Shinsegae Group’s verified premium retail mall. A sponsor REIT typically refers to a REIT where a large corporation is the largest shareholder and manages the real estate sold to the REIT through an asset management company funded by that corporation. Shinsegae Property is known to reinvest in the REIT’s common stock (expected 50% equity investment) to continue responsible operational management.

The complex shopping mall Starfield Hanam operates under a lease structure common in advanced countries such as the United States, consisting of a base rent and sales-linked rent. Since its opening in 2016, it has maintained a vacancy rate in the 0% range while achieving sales growth.

A representative from Shinsegae Property Investment Management stated, "Retail assets have a different cycle from office assets, so we expect a portfolio diversification effect," and added, "Considering changes in the financial market, we plan to additionally incorporate premium assets held by Shinsegae Property." They further said, "We will strive to provide the public with sound real estate investment opportunities based on safety, growth potential, and reliability."