This article was posted on the ChosunBiz MoneyMove (MM) site at 1:26 p.m. on Oct. 21, 2025.
IGIS Asset Management barely extended the loan maturity for a fund that invested in the building and land of 'Daehakro CGV' in Jongno District, Seoul. As a result, concerns about a repeat of the Kondae CGV incident, in which the lender group declared an event of default (EOD) and seized assets, have been somewhat alleviated.
On the 21st, according to the investment banking industry, IGIS Asset Management recently signed loan agreements related to senior and subordinated borrowings for 'IGIS Retail Real Estate Investment Trust No. 299,' which holds Daehakro CGV. The agreement extends the previous maturity date of Oct. 20, 2025, by one year to Oct. 19, 2026.
When extending the loan maturity, IGIS Asset Management made an early repayment of 400 million won, part of the 38.4 billion won senior loan out of total borrowings of 41.4 billion won. The interest rate on the existing senior fixed-rate loan was lowered from an annual 5.50% to 5.0%, and the handling fee of 0.50% was removed. The subordinated loan rate of 8.50% per year and the condition that profit distributions cannot be made without prior consent from all lenders were maintained. The lender group consists of MetLife Life Insurance (senior) and SBI Savings Bank (subordinated).
IGIS Retail No. 299 is a real estate fund that uses the land and building of Daehakro CGV, located in Jongno District, Seoul, as its underlying assets. In 2019 it purchased the Daehakro CGV building and land for a total of 61.5 billion won. At that time, it financed the purchase price and related expenses with 21.67 billion won in public offering funds plus an initial loan of 42.0 billion won. Currently most of the building, which spans six basement floors to nine aboveground floors, is used by CGV.
At the time the fund was set up, it was evaluated as a high-quality asset with stable tenants, but the asset's value fell after disruptions to theater operations following the COVID-19 pandemic. Two attempted sales in July 2022 and May 2023 also failed. In addition, from Oct. 2022 the senior loan rate rose from 3% to 5.50% per year, increasing the interest burden. Currently the fund's return is minus 39.03% based on its inception date (Oct. 17, 2019).
IGIS Asset Management is pursuing an ongoing sale of Daehakro CGV. Since Oct. 2022 it has reduced the management fee and sales fee from 0.2% and 0.5% per year, respectively, to 0.001% to share the pain, so it is preferable to speed up a sale rather than hold the fund long term. However, the market demand for the film industry has declined, and it is reported that a buyer has not yet been found.
Earlier, Mall of K, which Kondae CGV was leasing, saw EOD declared after negotiations with the lender group over loan maturity extensions and refinancing broke down. After failing to sell the asset, the case moved to an auction process led by the creditor group. The listed beneficiary certificates have also been delisted from the Korea Exchange (KRX).
An industry official said, "Although demand for commercial real estate has partially recovered recently with the decline in market interest rates, the film industry shows little sign of rebounding and the Daehakro commercial district remains depressed," noting, "Extending the loan maturity bought some time, but if a sale fails, it could follow a path similar to Kondae CGV."