This article was posted on May 28, 2025, at 3:14 p.m. on the ChosunBiz MoneyMove site.
It has been confirmed that Masterton Investment Management has filed for corporate rehabilitation for its logistics center fund in Yongin. Due to oversupply in logistics centers and increasing vacancies, it appears that the company chose legal management due to deteriorating liquidity caused by unpaid rents.
According to investment banking (IB) industry sources on the 28th, Masterton Investment Management has recently applied for corporate rehabilitation procedures for 'Masterton No. 97 General Private Real Estate Investment Limited Company' at the Suwon Rehabilitation Court. After reviewing Masterton's application, the court issued a preservation order and comprehensive prohibition order. The representative's hearing date is set for the 29th.
Masterton Investment Management's 97th fund includes the Wonjin Logistics Center located in Baegam-myeon, Yongin, Gyeonggi Province. Masterton purchased the Wonjin Logistics Center, which was completed in December 2020, and has been operating it since then. The Wonjin Logistics Center is a low-temperature logistics center with a site area of 26,289 square meters, a total floor area of 38,853 square meters, and a scale of 2 basement levels and 4 aboveground levels.
The unpaid rents by tenants are cited as the reason for choosing corporate rehabilitation proceedings. An industry source noted, "After Masterton purchased the logistics center, the spread of the COVID-19 pandemic increased uncertainty in the financial environment," adding, "Additionally, with the downturn in the logistics industry compounding the situation, delays in rent payments have continued for several years." It is reported that Masterton has pursued the sale of the Baegam Logistics Center since 2023 but has not found a suitable buyer.
There are voices suggesting that filing for corporate rehabilitation is somewhat unusual. This is because it is common to sell assets through public auctions after a declaration of loss of benefits (EOD) from the main creditors. Recently, logistics centers owned by HDC I&C in Anseong, Jiseasang, and Donghaeng Construction in Incheon, and SGC E&C in Anseong are all undergoing public auction procedures.
The industry believes that Masterton has entered legal management to gain control over business operations. When the court issues a comprehensive prohibition order, it freezes assets and liabilities, and prohibits individual debt recoveries such as forcible execution, provisional seizure, and injunctions. Duties related to corporate management will be assigned to a manager, who is typically appointed from within the corporation.
As investment sentiment toward logistics centers is reviving, there are analyses suggesting they may be buying time to prepare for a future sale. Sales through public or private auctions tend to lower bid amounts whenever there are repeated failures, greatly increasing the possibility of losses for subordinate investors, excluding senior investors.
A source in the commercial real estate industry explained, "When acquiring assets through a public auction, some intentionally let auctions fail to subsequently lower the minimum bid price," noting, "Masterton seems to have applied for corporate rehabilitation to secure control over management because they are aware of this strategy."