This article was published on Aug. 20, 2025, at 3:47 p.m. on the ChosunBiz MoneyMove site.
Woongjin Preed Life, the largest funeral service company in Korea, has become the largest shareholder of the real estate investment trust (REIT) that owns the representative office 'Center Place' in downtown Seoul. Center Place secured anchor tenants such as Hana Financial Group and has maintained a rental rate of 100% for an extended period, which seems to justify its perceived stability as an investment opportunity.
According to the investment banking (IB) industry on the 20th, the largest shareholder of the HL3 real estate investment company (HL3 REIT) has changed to Woongjin Preed Life. Woongjin Preed Life's equity share has significantly increased from the existing 250,000 shares (11.50%) to 500,000 shares (23.0%). Samsung SRA Asset Management (19.9%) has stepped down from its position as the largest shareholder.
HL3 REIT is a real estate investment company established to acquire Center Place, located in the central business district (CBD) of Seoul. Center Place is a prime office building with a total floor area of 32,720 square meters, located near Euljiro-1-ga Station and City Hall Station. Currently, offices are used by Hana Bank, Hana Card, Samsung Fire & Marine Insurance, Samsung Card, SK Telecom, and others. The rental rate is 100%.
HL REIT Management, which is managing this REIT, acquired Center Place from KB Asset Management for about 292.3 billion won last June. The company financed 191.5 billion won of the acquisition cost through senior and mezzanine loans, while the remainder was covered by equity and rental deposits. At that time, Samsung SRA Asset Management and Preed Life invested in the equity. The total equity raised is at the level of 94 billion won.
Preed Life was confirmed to have purchased the equity held by existing shareholder Prime Best One to strengthen profitability. An industry source noted, "The asset management firm affiliated with Preed Life sourced the deal and recommended it," adding, "I understand that a final decision was made after going through the company's internal investment review committee."
HL REIT Management has projected an internal rate of return (IRR) for type shares of the 3rd REIT, including real estate disposal profits, to reach 15.10%. From July last year to the end of March this year, operating revenue was around 6.3 billion won, and dividends paid to type share investors during this period totaled 2.6 billion won.
Preed Life stated, "This REIT investment is a strategic investment for stable asset management and enhancing profitability."
Meanwhile, Woongjin Group acquired 99.77% of Preed Life's equity from the private equity fund operator VIG Partners for 887.9 billion won last June. It is anticipated that after the acquisition by Woongjin Group, Preed Life will invest more of its advance payments into real estate.