Koramco Life Infra REITs Raises 40 Billion KRW... Preferred Stock Investment in Gangnam Station DF Tower

Koramco Asset Trust announced on the 11th that Koramco Life Infrastructure REIT recorded a subscription rate of 106% during the two-day preemptive rights subscription from the 7th to the 8th, successfully raising about 40 billion KRW.

Koramco Asset Trust will use the funds raised through the paid-in capital increase to purchase preferred shares of the ‘Gangnam Station DF Tower.’ A stock purchase agreement was signed with the seller, Hana Securities, in August.

DF Tower is an office building located near Exit 5 of Gangnam Station, a transfer station for Seoul Subway Line 2 and the Shinbundang Line. It is the headquarters of the country’s top cryptocurrency exchange operator and has maintained a ‘zero’ vacancy rate since 2018. A contract has been signed to gradually increase the leased area and rent with the responsible tenant until 2027.

Recently, among office market listings, the preferred shares of DF Tower have been evaluated as outstanding in terms of investment stability. Koramco Asset Trust plans to enhance the scale of Koramco Life Infrastructure REIT and strengthen dividend stability through this DF Tower preferred share investment.

Koramco Life Infrastructure REIT is Koramco Asset Trust’s flagship listed REIT, owning over 150 HD Hyundai Oilbank directly operated gas stations nationwide, large home appliance stores such as Samsung and LG Electronics, Coupang fulfillment and last-mile logistics centers, drive-thru (DT) stores of major F&B brands like McDonald’s and Paul Bassett, and preferred shares of Majesta City Tower 1 in Seocho-dong.

At the time of listing, Koramco Life Infrastructure REIT’s target yield based on the public offering price was 6.2% per annum. However, through steady value-add and asset sales, the current actual dividend yield continues at about 7.6% per annum, exceeding the target yield. This preferred share investment is expected to further increase Koramco Life Infrastructure REIT’s target dividend yield.

Janghyuk Lee, Head of Koramco Asset Trust, said, “The full subscription of this paid-in capital increase serves as a catalyst for improving Koramco Life Infrastructure REIT’s profitability and growth. We will implement various strategies targeting high-quality assets to steadily increase actual dividends beyond targets.” He added, “Koramco Life Infrastructure REIT, which has grown most actively among domestic listed REITs, will strive to firmly establish itself as a leading domestic REIT.”

Koramco Life Infrastructure REIT recently confirmed the sale of six gas station assets it held, forecasting a dividend in the 10% range by the end of next month.