코람코

브라우저 최적화 안내

본 화면은 익스플로러 최신버전 및 웹표준을 준수하는 브라우저에 최적화 되었습니다.

정상적인 컨텐츠 및 서비스를 제공받기 위해서는 최신브라우저를 유지해주시길 바랍니다.

크롬브라우저 설치 무시하고 진행하기

ABOUT US

Real Estate Trust

Information

Careers

KORAMCO TRUST

REITs

Overview

Share

What is a REITs?

REITs (Real Estate Investment Trusts) mean a real estate investment company operating under business license(registration) from the Minister of Land, Infrastructure, and Transport for the purpose of investing in real estate with the collected funds from multiple investors, and providing the operating and sales profit to investors in the form of dividends or sales proceeds distribution.

REITs offer chances for investors to invest in real estate through capital market by connecting capital market and real estate market.

2007 PangyoSD2

Real estate investment through capital market
financial investment product through securitization of real estate
  • By connecting capital market with diverse investors with real estate market, individual investors can invest in large scale real estate with small capital.
  • Efficiency and transparency of real estate market are improved by spreading and sharing risk from investing in large scale real estate.
  • It is quality alternative investment vehicle that investors can expect stable income in the era of aging society and low interest rate.
코람코자산신탁 다이어그램

Strengths of REITs Investment

Strong Profitability

A higher yield vis-a-vis investment risks is expected, driven by real estate investment based on precise market reviews and analyses.
An additional yield is possible with higher values in real estate through professional and systematic asset management such as remodeling.

Solid Stability

As investments are in the form of real estate, risks of investment value are minimized even amid inflation.
In the worst case scenario, the loss of investment principal can be minimized by disposing of real estate holdings, and a stable shareholder return is possible through rational investment analyses on lease fees, vacancy rates and maintenance fees.

Convenient Liquidity

As for listed REITs, stocks held can be converted into cash, if necessary.

Tax breaks

Income tax is almost nil once over 90% of the income available for dividends are distributed(Article 51-2 of the Income Tax Act)
Progressive taxation (the maximum tax rate of 0.7%) is applied for property taxes and comprehensive real estate taxes for land upon direct investment. However, the land property tax of 0.2% is singularly applied upon REITs-based investments, and excluded from the list of investments subject to comprehensive real estate taxation.
(Local Tax Article 106 and Enforcement Ordinance Article 102)

Expansion of Investment Opportunities

Investment opportunities in large-scale real estate projects are available even with small-scale funds including those of personal investors.

Company Building Purchase

The status comparable to a building owner can be obtained and there are financial effects from investment and renting.
Asset operation's efficiency can be maximized through knowhow utilization of expert asset management knowhow of AMC.

2007 KOCREF No.11 STX Namsan Tower

Strengths

Status comparable to a building owner

  • Building name can be changed
  • External board attachment is possible (Naming Right)
  • Through REITs appointment of board of directors, decision making participation regarding major matters of building operation is possible.
  • When there is a demand for renting buildings in the future, prior and active reponse is possible through close consultation.

Financial effect from investment and renting

  • Small scale investment satisfies the needs of making a company building (investment of about 10% of a total expense)
  • Enjoying operation profit and asset value increase from rental cos as shareholders
  • Reducing rental cost in reasonable renting condition compared with markets
  • Making foundation for a company building by offering a claim for preemption

Asset management knowhow utilization

  • Asset management risk minimization through expertise and experience of an asset management company whch performs asset management only
  • Business competitive edge enhancement through environment creation for companies owning real estate to focus on their main business

Cases of Company Building Purchase through Utilization of REITs

  • KOCREF No.4

    YTN tower liquidation completed

  • KOCREF No.11

    STX Namsan tower liquidation completed

  • KOCREF Cheongjin

    Grand Seoul in operation

Liquidation of Holding Asset

Fixed asset on financial statement is book-off, and
operation asset securing and financial index
improvement are possible. In addition, through equity
contribution of REITs, the status similar to a building
owner is acquired, through provision of preemption
option to sellers asset repurchase at the expiration of
REITs is possible.

2005 KOCREF No.6 Newcore Outlet Yatap

When debt
redemption is made
with the price for sale,
the debt ration is
decreased. Through REITs equity
contribution, status
similar to a building
owner is acquired and
renting profit is obtained. Through provision of
preemption option to
sellers asset
repurchase at the
expiration of REITs is
possible. Regarding building facility
management, affiliates
can be utilized

Cases of Holding Asset Liquidation through Utilization of REITs

  • KOCREF No.3

    Hanhwa securities building liquidation completed

  • KOCREF No.6

    New Core outlet in operation

  • KOCREF No.38

    Korea National Oil company building in operation

Development Project

Development REITs performs the role of SPC as a
developer and borrower in name.
In addition, regarding he entire or partial projects in construction by a developer or
a constructor, on the condition of consruction
completion, selling to REITs is possible and in this case
the project cost can be secured with advance buying
payment.

2013 KOCREF Gwanggyo lotte outlet

Strengths

Directly developed through REITs

  • Development REITs performs the role of SPC as a developer and borrower in name
  • Asset operating company performs businesses such as prject plan establishment and funding and the role of CEO of REITs of development as a corporate body director

Prior purchase on the condition of construction completion

  • Regarding he entire or partial projects in construction by a developer or a constructor, on the condition of consruction completion, selling to REITs is possible
  • A developer of a constructor can secure project cost, reduce financial cost, and performs stable projects.

Land contribution in kind and holders joint project

  • The exising land owner or company's holding real estate in invested in REITs and REITs directly develops based on this.

Case of Development Project Utilizing REITs

  • Pangyo SD-2 PFV

    Pangyo H'square

  • KOCREF Gwanggyo

    lotte outlet Gwanggyo

  • KOCREF Byuken

    Seocho Shillastay

E-REITs Kocref being listed on KOSPI

To comply with the government's policy to facilitate
public REITs market and to lead the popularization era of
REITs investment, along with ELAND Group,
E-REITs Kocref (E-Riets Kocref company restructuring
real estate investment company) was listed on KOSPI.

Newcore Ilsan

E-REITs Kocref has the top three stores in sales of Newcore Outlet operated by ELAND Retail (Ilsan store, Pyongchon store, Yatap store) as basic asset, and through responsibility rent contract for at least 15 years with ELAND Retail, this REITs is secured with stable rental income. Based on this stable rental income, around 7% dividends per year is provided to investors.

REITs publicly listed is stable alternative investment with no risk factors and expenses from lessee management and facility management experienced when making direct real estate investment such as commercial buildings and houses, it makes it possible for general investors such as retired people to have stable profits in the era of low interest rates and population aging. In the future, E-REITs Kocref will grow into a super large anchor REITs with more than 1.5 trillion won by investing in major core commercial area excellent commercial facilities through sustained capital increase by issuing new stocks and financing.

  • Newcore Pyeongchon

  • Newcore Yatap

  • Newcore Ilsan

REITs Kinds and Characeristics

Type of REITs

Type Company Form Inverstments Category
Corporate Restructuring
(CR-REITs) 		Paper Company
(Paper company) 		Real estate for
corporate restructuring 		Asset's investment and management is consigned to a specialized asset management company (Koramco REITs & Trust)
Consigned-Managment
REITs 		Paper Company
(Paper company) 		Real estate
Self-managed REITs Ordinary company Real estate REITs whereby overall asset management such as asset
Investment & management is conducted by a
specialized asset management workforce
- REITs characteristics by kind

Classification

Company Type Externally-managed REITs Corporate Restructuring REITs Self-managed REITs
Investments Real estate Real estate for corporate restructuring Real estate
Company Type Paper Company (no full-time personnel) Paper Company (no full-time personnel) ordinary company
(having full-time personnel)
The lowest capital KRW 5 Billion KRW 5 Billion KRW 7 Billion
Distribution of Shares Within 50% per person No limit Within 50% per person
Public Offering Capital of 30% or more No obligation (private equity possible) Capital of 30% or more
Going Public Immediately right after
requirements are met 		No obligation Immediately right after
requirements are met
Asset Composition ㆍ Real estate and real estate relate securities : 80% or more
ㆍ Real estate : 70% or more 		Real estate : 70% or more ㆍ Real estate and real estate relate
securities : 80% or more
ㆍ Real estate : 70% or more
Development Project According to decision of general assembly of shareholders up to 100% investment out of total capital is possible.