The domestic virtual asset exchange Bithumb will acquire the "Gangnam N Tower" from KB Real Estate Trust next month. By securing a 50% stake in the real estate investment company (REIT) that includes Gangnam N Tower through a share deal, the amount invested in securing the equity is around 150 billion won. After acquiring Gangnam N Tower, Bithumb plans to relocate some departments here.
A share deal is a sale form that only replaces the beneficiaries of a fund or REIT, as opposed to an asset deal, where parties to the transaction directly buy and sell real estate. It has the advantage of being exempt from real estate acquisition tax and simplifying the transaction process.
According to KB Real Estate Trust on the 23rd, a review was conducted during the extraordinary shareholders' meeting of the KB Gangnam Office No. 1 Trust Management REIT held the previous day regarding the reduction of capital and the agreement on the right of first refusal with Bithumb.
The KB Gangnam Office No. 1 Trust Management REIT holds Gangnam N Tower as an asset. Gangnam N Tower is a 24-story office building with a total floor area of 51,126 square meters, located on Teheran Road in the Gangnam District of Seoul, consisting of 7 basement floors and 24 above-ground floors. Developed by the real estate development company Next Properties, it was completed in 2018. KB Real Estate Trust acquired this building from the Yeoksam PFV (Project Financing Vehicle) in 2018 in partnership with Mirae Asset Securities and NH Investment & Securities. The acquisition price at that time was 29.25 million won per 3.3 square meters.
KB Real Estate Trust will sell the underlying asset, Gangnam N Tower, through a capital restructuring method that involves a reduction of this REIT's stock. Bithumb will invest in 50% of the REIT's equity in common stock. The overall equity size expected by KB Real Estate Trust is 300 billion won. Of this, around 150 billion won will come from Bithumb. The remaining amount will be reinvested in preferred shares by existing REIT investors including KB Real Estate Trust and mutual aid associations. This means they will have the opportunity to reinvest in quality assets while realizing profits from the sale of the building.
A shareholder company of the REIT noted, "We expect the total equity size to be 300 billion won," adding, "Bithumb will invest 50%, and the amount may be around 150 billion won, possibly a bit more." They further stated, "KB Real Estate Trust and some mutual aid associations will participate in the reinvestment."
The transaction completion date between KB Real Estate Trust and Bithumb is expected to be on the 27th of next month. A KB Real Estate Trust official stated, "The deal is expected to conclude by the end of next month."
Once this deal is concluded, Bithumb plans to transfer some departments to Gangnam N Tower. For Bithumb, this signifies establishing a base in the Gangnam area (GBD). A Bithumb official stated, "Since last year, we have heavily recruited information and communication technology (ICT) personnel, and we have run out of the current office space, so we are proceeding with this deal to secure new office space," adding, "We will continuously think about efficient utilization methods considering future business directions."