Star SM REITs, Pursuing Management Rights Sale for Normalization

Star SM REITs, a KOSPI-listed company, announced on the 19th that it is pursuing the sale of its management rights to normalize operations.

Following a special inspection by the Ministry of Land, Infrastructure and Transport, Star SM REITs received a two-month business suspension order on the 17th.

Due to the business suspension, the company is prohibited from acquiring new assets, developing new projects, entering into new leases or subleases, and engaging in new borrowing or lending activities for two months. However, routine operations such as collecting rent from existing assets, paying dividends to shareholders, and disbursing employee salaries are allowed.

A representative of Star SM REITs stated, “We are currently negotiating the sale of management rights to normalize the company, and we are considering a public sale by selecting an underwriter.”

They also added, “All current registered executives of Star SM REITs have taken moral responsibility for this incident and have submitted resignation commitment letters to ensure a swift transfer of management rights. We have decided to select a high-quality buyer to transfer management rights in order to achieve rapid business normalization, enhance management transparency, and improve external credibility.”

Star SM REITs was listed on the Korea Exchange in 2016, and its largest shareholder is AL136, holding 11.17%. Last year, the company changed its name from Modetour REITs to Star SM REITs and owns the MD Hotel located in Dongtan and Doksan-dong.