This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:01 p.m. on Mar. 31, 2026.
Koramco REITs Management and Trust is pushing to sell the headquarters building of the Korea National Oil Corporation (KNOC) located in Ulsan Innovation City. It has been about nine years since the asset was acquired through a corporate restructuring REIT, and the firm is moving to proactively begin the sale process ahead of the REIT's maturity.
According to the investment banking (IB) industry on the 31st, Koramco REITs Management and Trust plans to soon begin preliminary preparations, including selecting an advisor, to sell KNOC's Ulsan headquarters building. Although a specific sale schedule has not yet been set, the company is known to be carrying out early-stage work to check market conditions and the pool of potential buyers in advance.
The sale is largely a preemptive response tied to the REIT's approaching maturity. The REIT that holds the asset is set to mature at the end of this year. However, it remains uncertain whether KNOC will exercise its call option, which is in place until August this year. Koramco Trust decided to begin sale preparations in advance—such as selecting advisors and checking the market—in case KNOC does not exercise its right of first refusal.
The asset is a prime office located in Ulsan Ujeong Innovation City, with a total floor area of about 64,923 square meters and 2 underground floors to 23 above-ground floors. In the mid-2010s, after expanding overseas resource development investments, KNOC suffered from falling oil prices and investment losses, which worsened its financial structure, and sold its headquarters building to secure liquidity. It has since leased back the headquarters under a sale-and-leaseback structure and continues to occupy it.
Koramco Trust established a corporate restructuring REIT for restructuring purposes at the time and acquired the asset. It raised about 84 billion won in equity through both a public offering and a private placement, and covered about 136 billion won with borrowings. After about five years, the REIT was converted to a private placement, allowing the initial public investors to exit, and new investors were brought in; it has been operated for about four years to date. The current major shareholders include the Early Production Stabilization Foundation, IBK Securities, Samsung Securities, Hana Capital, and Korea Securities Finance.
Market interest in the sale price is also high. When Koramco Trust acquired the asset in 2017, it invested about 238 billion won, including acquisition tax and incidental expenses. The industry expects the transaction price to be set in the 300 billion won range, given stable rental income and a single-tenant structure with a public corporation. However, some note that the actual conclusion of a deal remains to be seen, considering the recent interest rate environment and liquidity in regional office markets.
An industry official said, "If you respond only when the REIT reaches maturity, you may be at a disadvantage in securing investors or pricing," and noted, "This is about checking the sale strategy and the pool of potential buyers in advance, assuming the possibility that the call option will not be exercised."