Hyundai Group selected Bolt Asset Management as the preferred negotiation partner for the sale of its office building in Yeonji-dong, Jongno-gu, Seoul.
Hyundai Elevator announced on the 14th through a public notice that it has selected Bolt Asset Management as the preferred negotiation partner for the sale of the Yeonji-dong office building and that it plans to discuss details related to the sale.
Earlier, Hyundai Group appointed Samjong KPMG as an advisory firm for the office building sale in April. The sale method will be a sale and leaseback, and Hyundai Group is expected to remain in the building even after the sale.
The auction for Hyundai Group's Yeonji-dong office building held on June 25 was attended by about 10 to 20 domestic and foreign real estate asset management firms. It received positive evaluations for attracting more institutions than initially expected.
The Hyundai Group's Yeonji-dong office building is situated on a site of 11,179.7 square meters (approximately 3,381 pyeong), consisting of an east building (4 basement floors and 12 above-ground floors) and a west building (4 basement floors and 16 above-ground floors).
Hyundai Elevator sold this office building to Koramco Asset Management in 2012, which continued to be used as an office as before. Subsequently, Hyundai Elevator exercised its right of first refusal in 2017 to reacquire the office building for about 200 billion won and is now looking to resell it after 8 years.
Hyundai Group plans to use the proceeds from this office building sale for future investments and enhancing shareholder value.
The sale price is reported to be in the high 300 billion won range, but it is said that Bolt Asset Management offered a higher price. Bolt Asset Management is a domestic asset management company established in 2019.