Daishin Financial Group presented a blueprint to grow its first listed real estate investment trust (REITs), Daishin Value REITs, to an asset size of 2 trillion won within 5 years.
Daishin Asset Trust held a meeting on the 12th at the 63 Building in Yeouido, Seoul, and disclosed the growth strategy of Daishin Value REITs. Daishin Value REITs is scheduled to be listed on the KOSPI market on the 7th.
The underlying asset of Daishin Value REITs is the group's integrated headquarters, 'Daishin 343'. It is a prime office in a triple transportation zone in the central business district (CBD). Daishin Asset Trust explained that stable rental revenue is possible, as all group affiliates are located there.
Moreover, Daishin Value REITs can prioritize the inclusion of the group's development assets in the future, which means that both asset and dividends can continue to increase, Daishin Asset Trust explained. Securing assets of over 2 trillion won five years after listing is the medium- to long-term goal.
Daishin Value REITs will use the funds raised from this listing to acquire shares in its sub-REITs. Before the listing, 68% of the total funds were pre-raised through a pre-IPO investment, completing the incorporation of assets worth 662 billion won. An additional 96.5 billion won will be secured through public offering. Daishin Securities, Korea Investment & Securities, and Samsung Securities are the underwriters.
Daishin Value REITs is expected to conduct its first quarterly dividends in November, based on the August settlement of accounts. It will then continue to provide quarterly dividends four times a year. Additionally, the low supply of circulating shares and its inclusion in major REITs exchange-traded funds (ETFs) are cited as strengths.
Kim Song-kyu, CEO of Daishin Asset Trust, said, 'Daishin Value REITs will establish itself as the representative listed REIT combining stability and profitability based on the infrastructure of Daishin Financial Group,' and 'we will realize sustainable revenue returns.'