Taeyoung E&C, which is undergoing corporate financial structure improvement (workout), will sell the Take Hotel in Gwangmyeong, Gyeonggi Province, to a subsidiary of SK D&D. This is similar to the sale of the Taeyoung Building, the headquarters of the Taeyoung Group.
According to investment banking (IB) industry sources and creditors on the 4th, Taeyoung E&C will sell the Take Hotel to D&D Investment, a specialized asset management subsidiary of SK D&D, which has established a corporate restructuring real estate investment trust (CR REIT).
Taeyoung E&C and D&D are currently negotiating the final terms of the sale. The Take Hotel is a four-star hotel located a five-minute walk from the KTX Gwangmyeong Station.
A CR REIT is an investment product that raises funds from financial investors, purchases unsold dwellings, operates them as rentals, and then sells them again when the real estate market recovers. It also buys real estate assets of corporations undergoing restructuring, like the Take Hotel, to generate revenue.
Earlier, the Taeyoung Group had also sold the Taeyoung Building in Yeouido, Seoul, to the CR REIT established by D&D. The sale price at that time was about 225.1 billion won. Taeyoung E&C has been pushing to sell the Take Hotel since the beginning of this year, but it is reported that it failed to finalize the sale due to disagreements on price with potential buyers. Ultimately, the method was changed to a sale through CR REIT, similar to the Taeyoung Building.
Taeyoung E&C has been implementing the self-rescue plan submitted to creditors since the beginning of the workout last year. In October of last year, Taeyoung E&C disposed of Blue One's 'Luna X Golf Course' for 195.6 billion won. It also transferred its environmental affiliate Ecorbit to an IMM Private Equity and IMM Investment consortium for 2.7 trillion won. Additionally, it is also pursuing the sale of properties such as the Gyeongju hot spring area, Gwangmyeong station area, arboretum site, and Osan site.