[Alpha Biz= Paul Lee] Lotte Engineering & Construction (Lotte E&C) is pursuing a plan to liquidate assets worth approximately KRW 1 trillion, including the potential sale of its headquarters site in Jamwon-dong, Seocho-gu, Seoul.
According to industry sources on Thursday, Lotte E&C has recently commissioned real estate consulting firms to conduct a comparative profitability analysis on various options, such as selling its headquarters site, developing the property itself, or utilizing a sale-and-leaseback strategy.
Based on the analysis results, Lotte E&C will finalize its asset liquidation strategy. The company is also considering selling other assets, including warehouse properties in the Seoul metropolitan area and stakes in rental housing REITs.
The Lotte E&C headquarters, located between apartment complexes in Jamwon-dong, is estimated to be worth around KRW 500 billion. The site, which has served as Lotte E&C’s headquarters since 1980, is expected to attract interest from developers and asset management firms due to its potential for residential redevelopment.
If all targeted assets are sold, Lotte E&C is projected to secure approximately KRW 1 trillion in liquidity.
This move aligns with Lotte Group’s broader strategy of divesting non-core businesses and assets across its subsidiaries.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
