AK Plaza announced on the 5th that it has secured the maximum equity stake through the additional setting of revenue securities of a real estate fund that uses the Bundang branch as its investment asset.
AK Plaza's strategy is to reinvest in the sustainable growth of the Bundang branch, using this maximum equity stake acquisition as a starting point.
The acquisition of revenue securities by AK Plaza is based on a consensus between AK Plaza and its fund manager, Capstone Asset Management, that the growth of sales and improvement of profitability at the Bundang branch are key challenges for increasing the value of the real estate fund.
As the government recently promoted the first-phase new city reconstruction project, expectations for the growth of the Bundang real estate market and business districts are rising, and the two companies agreed on this acquisition of revenue securities to ensure not only a resurgence of the AK Plaza Bundang branch but also an increase in real estate asset and fund value.
AK Plaza plans to establish a stable business structure through the equity acquisition and actively pursue reinvestment for the sustainable growth of the Bundang branch.
This year, it plans to create a region-friendly multi-cultural space through a renewal of the cultural academy and expand customer lounges to improve convenience for customers. In the medium to long term, it will also proceed with a renewal of department store merchandise planning.
AK Plaza has been improving its financial structure through mergers between corporations and capital increases to overcome the deterioration of profitability.
An AK Plaza official noted, "Despite intense competition, the AK Plaza Suwon branch increased sales last year, while the Hongdae branch recorded a growth rate 23% higher than the previous year," adding that "the resurgence of the Bundang branch, as well as strengthening the competitiveness of the four department stores and seven shopping malls currently in operation, will lead to a significant improvement in results by expanding online sales channels."