Hana Office REITs Securities Registration Takes Effect...KOSPI Listing Scheduled for April

Hana Office REITs (Hana Office Real Estate Investment Trust Management Company), the first publicly offered and listed REITs of Hana Financial Group, announced on the 25th that the securities registration statement it submitted to the Financial Services Commission has taken effect and that it has begun the full-fledged process for a public offering and listing.

According to the securities registration statement, the offering price of Hana Office REITs is 5,000 won, and the number of shares to be offered is 25.2 million. Through this public offering, the company plans to raise 126 billion won. On March 23-24, it will conduct a book-building process for domestic and overseas institutional investors, and from March 31 to April 1 it will receive subscription orders from retail investors. The REITs is scheduled to be listed on the KOSPI market in April. The joint lead managers for this offering are Hana Securities and Korea Investment & Securities.

The assets of this REITs consist of two properties: Hana Financial Group’s Gangnam office building and Taekwang Tower. They are located in a prime area of the Gangnam business district, a three-minute walk from Gangnam Station and Yeoksam Station. Gangnam is one of Seoul’s leading business hubs, where global companies and large corporations have their headquarters clustered. In particular, the Teheran-ro area is regarded as a core location where new office supply is limited. Since the area was recently designated as a remodeling activation zone, transaction prices of major buildings along Teheran-ro have been on an upward trend, and expectations for floor area ratio relaxation have added to this trend, highlighting both the scarcity of existing assets and their potential for value appreciation.

The offering price was calculated based on net asset value (NAV). The total individual asset value is approximately 432 billion won. After the offering, subtracting 250.3 billion won in liabilities and 6 billion won in private equity capital, the equity value is about 175.6 billion won. Dividing this by the number of shares outstanding after the offering results in approximately 5,744 won per share.

In particular, unlike other listed REITs, the company presents an investment guideline that clearly defines asset type and region. As a principle, it plans to allocate at least 80% of total assets to offices and at least 50% to assets in the Gangnam area, and it will consider paid-in capital increases only to the extent that they do not impair shareholder value or returns.