Lingerie and fashion corporations VIVIEN(002070) will sell their Yongsan headquarters in Seoul and a neighborhood living facility in Gwangbok-dong, Busan. The aim is to ease years of losses and borrowing burdens through securitizing real estate asset.
VIVIEN said on the 27th that it selected Samjong KPMG as the sale manager for the two asset sales and began related procedures.
The Yongsan headquarters up for sale has a total floor area of about 3,177 pyeong and spans 3 underground floors to 10 above ground. With a floor area ratio of about 357%, the existing building exceeds the current permitted ratio, giving it scarcity value, the company said. Adjacent to planned development sites such as the Yongsan International Business District and Yongsan Park, it aims to target demand from corporations and institutions for actual use.
The Gwangbok-dong asset in Busan is a general commercial area building with a total floor area of about 523 pyeong and five above-ground floors. It borders the original downtown commercial districts such as Nampo-dong and BIFF Square. The company sees room versus the legal floor area ratio that could allow expansion, but the actual development scale may vary depending on permitting results.
The sale price and the size of inflows have not been decided. Chief Executive Son Young-seop of VIVIEN said, "We will complete the asset sale without a hitch to raise financial soundness and resolve financial uncertainty by improving cash flow."
VIVIEN remained in the red last year with an operating loss of 5 billion won and a net loss of 12.6 billion won. In March this year, it carried out a 30-to-1 capital reduction without consideration to eliminate accumulated deficits, and in June decided on a 25 billion won third-party allotment paid-in capital increase, of which 20 billion won will be used for debt repayment.