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Lotte World Tower (Photo = Lotte Holdings) |
[Alpha Biz= Reporter Kim Sangjin] Lotte Group has taken significant steps to address recent liquidity concerns by revaluing its land assets and selling off non-performing assets such as department stores and hotels. During an investor relations (IR) meeting held on November 28 at the Korea Teachers' Credit Union in Yeouido, Seoul, key affiliates of Lotte, including Lotte Holdings, Lotte Chemical, Lotte Construction, and Lotte Shopping, presented their self-help plans to institutional investors.
One of the key actions announced by Lotte Shopping was the revaluation of its land holdings, which are worth approximately 7.6 trillion won. This revaluation, which marks the first time in 15 years, is expected to reflect the recent increase in land prices, boosting the company's asset value and improving the group's financial stability and liquidity. In a similar revaluation conducted in 2009, Lotte Shopping reported a 3.6 trillion won increase in asset value, which helped reduce its debt-to-equity ratio from 102% to 86%.
Additionally, Lotte Department Store plans to sell underperforming stores, including its Centum City location in Busan, as part of an effort to streamline operations and improve profitability. The divestment of non-core assets, including hotels, is also part of the strategy to enhance liquidity.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
