Yuanta Securities Signs MOU with JB Asset Management to Promote Acquisition of Unsold Housing through CR REITs

Sharing Practical Know-How and Ensuring Smooth Progress of Future Joint Projects
Providing Financial Advisory Services to CR REIT Project Participants

Yuanta Securities (CEO Luo Zifeng) announced on September 30 that it had signed a strategic business agreement (MOU) with JB Asset Management (CEO Choi Woncheol) at its headquarters in the Anchor One Building in Yeouido, aiming to promote the acquisition of unsold housing units through Corporate Restructuring REITs (CR REITs).

CR REITs are real estate investment companies that collect funds from investors to purchase unsold housing, operate them as rental properties, and then distribute profits to investors by selling the properties once the real estate market recovers. To help resolve unsold inventory for construction companies and stabilize the real estate market, CR REITs were reintroduced in March last year after a ten-year hiatus.

(Right) Luo Zifeng, CEO of Yuanta Securities, Choi Woncheol, CEO of JB Asset Management. Yuanta Securities

Yuanta Securities and JB Asset Management already began collaborating as financial advisor and asset management company on May 30, starting with the purchase of unsold housing in Suseong District, Daegu, through JBYSK No. 2 CR REIT, the first CR REIT approved by the Ministry of Land, Infrastructure and Transport. They are currently working together on all tasks related to the purchase of unsold housing in Yangsan, Gyeongnam, through the second CR REIT, JBYSK No. 3.

This business agreement was signed to share practical know-how, such as coordination with related institutions, process establishment, and improvements gained during the acquisition of unsold housing by the first and second CR REITs, and to ensure smooth progress in future joint projects between the two companies.

Through this agreement, Yuanta Securities will serve as a financial advisor by proposing financial terms and arranging acquisition funds for CR REIT projects managed by JB Asset Management. The companies also agreed to continue cooperating on the efficient operation and management of unsold housing being acquired by other CR REITs managed by JB Asset Management, such as 275 units in Gwangyang, Jeonnam, and 215 units in Jung District, Daegu, as well as to promote the acquisition of unsold housing by new CR REITs in the future.

Luo Zifeng, CEO of Yuanta Securities, stated, "The synergy between Yuanta Securities, with its outstanding financial advisory capabilities, and JB Asset Management, which has a differentiated competitive edge in the CR REIT market, will serve as a strong example of collaboration in the CR REIT sector. Based on this partnership, we will continue to strengthen our competitiveness to provide comprehensive financial advisory services in the CR REIT market."

Choi Woncheol, CEO of JB Asset Management, commented, "We are pleased to have become partners with Yuanta Securities and will continue to collaborate to promote the acquisition of unsold housing through CR REITs. Having acquired and managed approximately 1,043 units across four sites through CR REITs, JB Asset Management will continue to enhance its competitiveness and gradually expand its market position in the CR REIT sector."