Lotte Engineering & Construction is pursuing an asset liquefaction worth 1 trillion won, including the sale of its headquarters site in Jamwon-dong, Seocho-gu, Seoul.
According to Lotte Engineering & Construction on the 27th, the company has recently commissioned real estate consulting firms for plans regarding the asset liquefaction, including the sale of its headquarters site. The plan also includes the sale of warehouse assets and rental housing equity in the capital area to secure liquidity. A Lotte Engineering & Construction official noted, "We have decided to liquefy approximately 1 trillion won worth of assets and are reviewing various options."
Lotte Engineering & Construction plans to determine its asset liquefaction method after receiving the analysis results.
The Lotte Engineering & Construction headquarters building under discussion for sale is located between apartment complexes in Jamwon-dong, Seocho-gu, Seoul. It has been used as the headquarters since 1980 and can be developed into residential facilities, attracting interest from developers and asset management companies. The real estate industry estimates the asset value of the building to be around 500 billion won.
If all remaining assets, including equity in the Real Estate Investment Trusts, are sold, Lotte Engineering & Construction is expected to secure about 1 trillion won. Facing a liquidity crisis, Lotte Group has recently been reorganizing non-core businesses of its subsidiaries and pushing for the disposal of inefficient assets.