Eugene REITs Management, a REITs (real estate investment trust) specialist asset manager under Eugene Group, said on the 7th that it has completed the purchase of the Byeoljeong Post Office Retirement Pension Management Agency building.
Eugene REITs Management was selected in Jul. last year as the preferred bidder to purchase the Byeoljeong Post Office Retirement Pension Management Agency building in Mapo-gu, Seoul. This is the first investment since the establishment of the Eugene REITs Management entity. The purchase price of the Byeoljeong Post Office Retirement Pension Management Agency building is about 133 billion won, and the total investment amount including incidental expenses is about 156 billion won.
In this acquisition, Eugene REITs Management designed a stable funding structure that mixes senior and mezzanine loans with preferred and common stock. Without borrowing from first-tier banks, it secured an all-in cost of funding at about 4.5%.
The Byeoljeong Post Office Retirement Pension Management Agency building is an office property on a 1,935㎡ site with a total floor area of about 22,647㎡ (six floors underground to 18 floors above ground). A Eugene REITs Management official said that, given its prime location right by Gongdeok Station, stable asset management would be possible.
Eugene Group plans to use the acquired building as the group's consolidated headquarters. It will gather affiliates currently dispersed across Yeouido, Yongsan, and Mapo into one place to maximize work efficiency and create synergies among affiliates to maximize asset utilization value.
A Eugene REITs Management official said, "Through the acquisition of the Byeoljeong Post Office Retirement Pension Management Agency building, Eugene REITs Management has proven its capability as a 'total solution provider' that takes responsibility from deal sourcing to exit for external assets, rather than a simple manager," adding, "We will accelerate the establishment of the second and third REITs and solidify our position in the market."