The Success Formula for Commercial Properties: 'Anchor Tenant'... Growing Interest in Kumkang Housing's 'Covent Walk Geomdan'

- Synergy Between Daiso and Ashley Queens Expected to "Energize the Entire Commercial Facility"
- Stable Operation Possible with 1,033 Fixed Households and Over 40,000 Nearby Households as a Strong Customer Base

Commercial properties with anchor tenants are showing strong performance in the sales market, backed by high investment value. As demand grows for commercial facilities that possess both a solid customer base and strong drawing power, 'Covent Walk Geomdan', which already has Daiso as a tenant and is actively operating, has proven its ability to attract customers in Geomdan New Town. Recently, with the news that Ashley Queens will also be opening there, investors are increasingly focusing their attention on this landmark commercial property.

'Covent Walk Geomdan', a landmark commercial facility developed by Kumkang Housing, is located in blocks RC3 and RC4 of Incheon Geomdan New Town. Of these, the RC3 block 'Covent Walk Geomdan Phase 1' consists of 82 units on the first floor and 55 units on the second floor, totaling 137 units. The RC4 block 'Covent Walk Geomdan Phase 2' consists of 59 units on the first floor and 38 units on the second floor, totaling 97 units, making both among the largest commercial facilities in the area.

In particular, the announcement that Ashley Queens will be opening is expected to further enhance the property's ability to attract visitors, positioning it as a key destination in Geomdan New Town. Ashley Queens has emerged as a leading domestic franchise brand, known for offering generous portions at affordable prices. The number of its locations nationwide increased from 59 in 2022 to 112 currently, demonstrating its evolution into an anchor tenant.

As a result, there is strong interest in Ashley Queens from various parties. In fact, last year alone, four new Ashley stores opened in department stores, and with its entry into Hyundai Department Store Sinchon branch, it became the first time that Ashley Queens has been present in all three major department stores in Korea (Lotte, Shinsegae, Hyundai). Thanks to this, E-Land Group, which owns Ashley Queens, saw its sales rise by more than 85%, from 253.5 billion KRW in 2022 to 470.5 billion KRW last year.

The presence of Ashley Queens, combined with the existing Daiso store in Covent Walk Geomdan Phase 1, is attracting significant market attention due to their synergistic effect. Daiso, with over 1,500 stores nationwide, is a 'distribution giant' brand and a leading facility for attracting visitors, with more than 40 million users last year alone. Its sales exceeded 3 trillion KRW in 2023, and it is expected to surpass 4 trillion KRW last year.

According to industry sources, as of the end of January, Daiso had stores in 173 out of 392 large supermarkets operated by the three major chains (Emart, Lotte Mart, Homeplus), representing an entry rate of 44%. Due to Daiso's excellent ability to attract customers, large supermarkets are proactively seeking to bring the brand in. In fact, a representative from a large supermarket stated, "Although it is difficult to separately verify the effect of a new Daiso store, sales during a certain period after Daiso opened increased by about 69% compared to the same period last year."

With both Ashley Queens and Daiso opening in Covent Walk Geomdan, the property is being recognized for its unparalleled ability to attract visitors, establishing itself as a landmark in Geomdan. Since it is a destination that can be visited by couples, friends, business associates, and families alike, it is expected to stimulate additional spending at other stores, invigorating the entire commercial facility.

In addition, Covent Walk Geomdan is introducing a 'master lease' system to further enhance its investment value. The master lease is a rental management strategy in which the real estate developer (project operator) assumes responsibility for leasing, providing a systematic and strategic rental plan. During the contract period, the developer is responsible for attracting tenants and guarantees a return of 5.8% to 5% for two years, reducing the risk of vacancies and supporting the activation of the commercial area.

As the premium commercial facility brand 'Covent Walk' is being applied, the property also stands out for its differentiated product appeal. It is designed as a street-type shopping mall, which is rare in Geomdan New Town, and all units are located on lower floors, offering excellent visibility and efficient customer flow.

With abundant potential customers and a stable base of fixed demand, stable operation is possible. Just the fixed demand from residents of Ara Station Kumkang Penterium The Siglo Phases 1 and 2 amounts to 1,033 households, and there are more than 10,000 households within a 10-minute walk, providing a rich customer base. In addition, about 40,000 households reside in Phase 1 of Geomdan New Town and Wondang District, making 24/7, year-round operation possible.

Furthermore, with Ara Station scheduled to open in June this year, the property is set to become a prime station-area commercial facility. The opening of a subway station is considered a major boon for real estate, as improved accessibility not only attracts more residents but also converts all subway users into potential customers for the commercial facility, which is seen as a significant advantage in the retail market. Especially since Covent Walk Geomdan is located on Wondang Boulevard leading to the Ara Station intersection, it is expected to have superior visibility and drawing power compared to other commercial properties.

By securing the most central location in Phase 1 of Geomdan New Town, closest to the legal district, the property can directly benefit from abundant infrastructure and development opportunities. It is expected to attract a steady stream of customers from nearby residential areas and the legal district, as it can absorb the floating population of employees working at the Incheon Western District Court and Prosecutors' Office, among others.

Meanwhile, the Covent Walk Geomdan promotional center is located within Covent Walk Geomdan Phase 1.