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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] IGIS Asset Management Co., Ltd. on January 22 stated that its planned sale of the Centerfield building in Yeoksam-dong, Gangnam, Seoul, is “not a unilateral decision” and is intended to protect investors’ interests through normal fund repayment amid uncertainties over extending the fund’s maturity.
IGIS is pursuing the sale ahead of a loan maturity in September, but Shinsegae Property, which holds approximately 50% of the fund’s private investment trust, opposes the sale. A Shinsegae Property representative said, “We have not considered selling Centerfield and do not agree with the asset manager’s decision. Should the sale proceed, we will explore all possible legal actions as investors.”
IGIS explained that differences among fund investors over extending the fund’s maturity prompted the sale. While Shinsegae Property supported an extension to retain the asset, other investors, including the National Pension Service, opposed it. A short-term one-year extension was implemented last October, but no agreement on further extensions was reached.
The firm emphasized that initiating the sale is intended to prevent loss of loan benefits (EOD) and risks from forced auctions. Centerfield’s loan matures in September, and the fund itself matures in October. Refinancing requires a confirmed extension of the fund’s maturity.
“A sale is necessary to repay KRW 1.2 trillion in loans due this September. Failure to do so could trigger loss of loan benefits and force the property into auction, damaging asset value and causing investor losses,” IGIS said. The firm added, “Our priority remains ensuring stable repayment of the fund and protecting investor value while working closely with all beneficiaries to identify the best solution.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
