An Asset to Be Acquired by a Publicly Traded REIT
KB Asset Management announced on May 13 that it has acquired a stake in the North Galaxy Towers in Brussels, Belgium, an asset to be acquired later by the company's first publicly traded REIT.
The purchase price of the twin 28-story skyscrapers in the Northern Quarter central business district of Brussels was 630 million euros (about 814 billion won). The investment amount excluding local loans is about 400 billion won.
KB Asset Management has acquired a 100 percent stake in the North Galaxy Towers through a private REIT. It plans to hold a pre-IPO of the planned REIT in July to raise funds from institutional investors. It intends to acquire the Samsung Europe HQ building in London for 50 billion won with the funds. Then it will list the REIT by going through a public offering for individual investors.
KB Star Global REIT has a total asset of 500 billion won. About 90 percent of the assets, or 450 billion won, will be invested in the North Galaxy Towers and the remaining 10 percent or 50 billion won in the Samsung Europe HQ building.
The North Galaxy Towers is leased to the Belgian Building Management Agency and the Samsung Europe HQ building to Samsung Electronics Europe. They have 10 and 15 years as their remaining leasing periods, respectively.