Hyundai Motor Securities has decided to exercise its right of first refusal for the headquarters building that has been put up for sale.
On the 14th, according to the investment banking (IB) industry, Hyundai Motor Securities notified Koramco Asset Management of its decision to exercise its right of first refusal for the headquarters building located in the Yeouido securities district of Yeongdeungpo-gu, Seoul, that morning. The right of first refusal refers to the right of existing investors or owners to purchase an asset on the same terms before it is sold to a third party.
Completed in 1994, the Hyundai Motor Securities building is located on International Financial Road in the Yeouido business district (YBD) of Yeongdeungpo-gu, Seoul. The site area is 3,176 square meters, with a total floor area of 40,439.98 square meters, consisting of 6 to 20 stories above ground. Hyundai Motor Securities, Shinhan Fund Partners, and Starbucks are key tenants. The total sale price is reported to be in the mid-300 billion won range.
Koramco Asset Management acquired the Hyundai Motor Securities building for approximately 266 billion won in 2020. At the end of last year, it selected a consortium of Avison Young Korea, S-1, and KPMG as the sales managers and has been pushing for the sale. In a bidding held on Feb. 14, about 10 prospective buyers emerged, leading to a successful auction, and BNK Asset Management was selected as the preliminary negotiating partner.
An industry insider noted, "Hyundai Motor Securities is in a situation where it needs office space, and it likely found it difficult to secure such an asset at this price elsewhere," adding, "Thus, it seems they decided to exercise their right of first refusal to secure the office first."
However, there are various speculations in the market regarding the form of the Hyundai Motor Securities building acquisition. An industry insider mentioned, "There are forms of exercising the right of first refusal where Hyundai Motor Securities can directly acquire the building, but there is also an option to transfer it to a third party," and added, "It is possible that the affiliated management company of Hyundai Motor Securities will purchase it, and the company could lease it back under similar or favorable conditions."
A representative from Hyundai Motor Securities stated, "We plan to proceed with the acquisition by exercising the right of first refusal," and noted, "We are considering various methods for the acquisition."