The current asset value of the building in Cheongdam-dong, Seoul, owned by actor Lee Jae-ryong and Yu Ho-jung, is estimated at 39.8 billion won. Assuming a total of 8.8 billion won was invested in purchasing the site and constructing the new building, a capital gain of about 31 billion won is expected.
According to Building Road Real Estate Brokerage on the 28th, Lee Jae-ryong and Yu Ho-jung jointly purchased a parking lot site near Cheongdam Park in Cheongdam-dong, Gangnam-gu, Seoul, for 6,183.91 million won in 2006. They then obtained a building permit in 2008 and in 2010 built a structure with one basement floor and five above-ground floors on the parking lot site.
The construction expense at the time was reported to be about 2.3 billion won. A high-end restaurant has leased all floors.
The building is located just off Yeongdong-daero and is rated by the real estate industry as having excellent transportation accessibility. It is in the station area of Cheongdam Station on Subway Line 7. It takes about five minutes on foot from the building to Exit 12 of Cheongdam Station.
Considering that the maximum secured claim on the registry was 4 billion won at the time of the parking lot site purchase, Lee Jae-ryong and Yu Ho-jung are estimated to have taken out a loan of about 4 billion won. Typically, the maximum secured claim is about 120% of the actual loan amount.
Including transaction incidental expense such as acquisition tax, legal fees, and brokerage commissions, the acquisition cost of the site is estimated at about 6.55 billion won. Adding the 2.3 billion won building construction expense, the total input cost is expected to be about 8.85 billion won.
According to Building Road Real Estate, a nearby building about 80 meters from the property recently changed hands at 180 million won per 3.3㎡.
An official at Building Road Real Estate analyzed that applying this to the 729.3㎡ site area of Lee Jae-ryong and Yu Ho-jung's building puts the current market price at about 39.8 billion won. Assuming 8.85 billion won was spent on the land purchase price and construction expense, the current expected capital gain is about 31 billion won, according to the Building Road Real Estate official.