SK D&D announced on the 19th that it will invest in the blind fund for real estate development, "Shinhan RE Balancing Fund", in collaboration with Shinhan Bank's Global Investment Banking (GIB) group.
"Shinhan RE Balancing Fund" is a fund being created by Shinhan Asset Management, in which SK D&D and the Shinhan Bank GIB group will jointly invest a total of more than 100 billion won. Of this amount, SK D&D will invest 30 billion won. They plan to secure external investors and expand the size to 200 billion won by early next year.
"RE Balancing" is a compound word combining "Rebalancing," which means structural improvement, and "Real Estate," indicating that it is a fund aimed at improving the soundness of development projects by increasing the equity ratio. In line with the government's ongoing "real estate project financing (PF) system improvement measures," it aims to expand the currently low equity ratio of domestic real estate development projects, which is only about 3%.
This investment was determined based on mutual trust between SK D&D and Shinhan Bank GIB group, involving PF financing, joint investments in rental housing, and participation in the normalization fund for Korea Asset Management Corporation (KAMCO) projects.
Meanwhile, SK D&D, as a comprehensive real estate developer, is expanding its business areas not only by developing commercial and residential real estate but also by securing asset management and investment, and operational capabilities together with its subsidiaries D&D Investment (DDI) and D&D Property Solution (DDPS). They are diversifying their capital platform through "PF normalization funds" with Shinhan Asset Management and KAMCO, as well as blind real estate investment trusts (REITs) with the National Pension Service (NPS), creating a stable financial procurement environment and expanding the scale of development and operations, including projects like the Seoul Station office, Gongdeok Station mixed-use complex, and Yeouido office reconstruction.