Shinsegae Property Criticizes IGIS Asset Management's "Unilateral Move" to Sell Centerfield

Expresses Opposition to IGIS's Decision to Sell
"Sale of Centerfield Is a Unilateral Move"
"Will Consider Legal Action If Unilateral Push Continues"

On January 15, Shinsegae Property strongly expressed its opposition to the recent move by IGIS Asset Management to sell "Centerfield," an asset of the fund "IGIS No. 210 Professional Investment-Type Private Real Estate Investment Company," which it manages, calling the decision "unilateral."

In a statement released the same day, Shinsegae Property said, "The sale of Centerfield is an arbitrary action by IGIS Asset Management," adding, "Despite having expressed our opinion that the sale itself is inappropriate from the perspective of investor protection, IGIS Asset Management is pushing ahead with the sale without sufficient grounds or explanation."

The Centerfield stake held by Shinsegae Group, including Shinsegae Property, amounts to 49.7%. Previously, Shinsegae Property invested a total of 554.8 billion won in "IGIS No. 210 Professional Investment-Type Private Real Estate Investment Company," managed by IGIS Asset Management, through the Capstone APAC Professional Investment-Type Private Investment Trust No. 2.

Centerfield, which IGIS Asset Management is seeking to sell, is located on Teheran-ro in Gangnam-gu, Seoul, on the site of the former Renaissance Hotel. The complex consists of two towers, 35 and 36 stories above ground, and was completed in June 2021. With a total floor area of 240,000 square meters and parking for 890 vehicles, it is the largest in the Gangnam business district. As a premium mixed-use commercial facility, it houses offices, a hotel, food and beverage (F&B) outlets, and lifestyle brands, and boasts a vacancy rate of 0%. The site is also home to Shinsegae Group's Chosun Hotel & Resort's top-tier hotel brand, "Josun Palace Seoul Gangnam, Luxury Collection Hotel."

Shinsegae Property views Centerfield as a high-quality investment asset expected to increase in long-term value. The fair value of Shinsegae Property's stake in Centerfield has steadily risen each year, from 708.5 billion won at the end of 2022 to 742.9 billion won at the end of 2024.

As an investor holding a 50% stake in Centerfield, Shinsegae Property has clearly stated the inappropriateness of the sale. The company expressed deep concern that the asset manager, who is responsible for taking the best possible actions for investors' interests, has not sufficiently considered this, that there is a lack of reasonable grounds for the sudden sale attempt, and that the process is being pushed through unilaterally without explanations that would satisfy investors.

A Shinsegae Property representative stated, "We have never considered the sale of Centerfield and have not agreed to the asset manager's unilateral decision to sell."

The representative added, "If IGIS Asset Management continues with these unilateral attempts to proceed with the sale, further undermining the trust in our partnership, we plan to consider all possible measures, including legal action, as an investor." He continued, "We will also request that our fund manager, Capstone Asset Management, review all possible responses, including changing the collective investment business operator for Centerfield."