(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Sangjin] Hanwha Life Insurance Sells Headquarters Building to Hanwha REIT for 808 Billion KRW

Hanwha Life Insurance is transferring its Hanwha Building in Janggyo-dong, Jung-gu, Seoul, to its affiliate, Hanwha REIT (Hanwha Real Estate Investment Trust).

On August 2nd, Hanwha Life Insurance announced through a board resolution that it will sell the Hanwha Building, located at 86 Cheonggyecheon-ro, Jung-gu, Seoul, to Hanwha REIT.

The Hanwha Building in Janggyo-dong is situated just a 2-minute walk from Euljiro 1(il)-ga Station, a key area in downtown Seoul. It has a total floor area of approximately 25,000 pyeong (82,500 square meters) and is fully leased. It has been used as the headquarters office of Hanwha Group.

The sale price is 808 billion KRW, translating to 35.9 million KRW per pyeong. Considering that premium offices in the area have recently been traded at 34 to 40 million KRW per pyeong over the past 3 to 4 years, this is a comparable rate.

The asset transfer process will be completed on August 28th, the date of payment. Hanwha REIT plans to issue 4.5 billion KRW in short-term commercial paper and raise the remaining funds through secured loans. Following the acquisition of Hanwha Building, Hanwha REIT’s total assets will increase to 1.615 trillion KRW. As the asset size grows, it is expected that there will be enhancements in dividend stability, payment capacity, credit rating, and market liquidity.

For Hanwha Life Insurance, this sale is anticipated to improve cash flow. In the first quarter of this year, Hanwha Life Insurance recorded a negative investment cash flow of 1.1477 trillion KRW. The remaining cash and cash equivalents amount to 1.0293 trillion KRW, which is 51.7 billion KRW less compared to the end of the first quarter of the previous year.

 

 

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