[Edaily Marketin KIM SUNG-SOO Reporter] With Homeplus’s corporate rehabilitation proceedings effectively concluded, Shinhan West TND REIT is accelerating its efforts to address vacancies at the “Square One” shopping complex in Incheon.

Shinhan Seobu TND REIT has begun efforts to protect its asset value by negotiating the termination of its lease agreement with Homeplus while simultaneously working to attract new tenants. Since the departure of a key tenant directly affects asset value and dividend stability, the market is closely watching the response strategies of REITs that hold Homeplus properties.

Negotiations to Terminate Homeplus Lease Underway

According to the financial investment industry on the 8th, Shinhan Seobu T&D REIT recently notified investors of its current response and future plans regarding the termination of Homeplus’s rehabilitation proceedings. Shinhan Seobu T&D REIT is currently in negotiations with Homeplus to terminate the lease agreement.

Shinhan Seobu T&D REIT was established through a collaboration between its sponsor, the real estate development company Seobu T&D, and its REIT asset management company (AMC), Shinhan REIT Management.

The REIT holds a portfolio spanning hotels, retail, and office properties. Its major investment assets include: △ “Gwanghwamun G Tower,” a mixed-use office, hotel, and retail complex; △ the 3-star “Shilla Stay Mapo” hotel; △ the mixed-use shopping mall “Incheon Square One”; and △ the 5-star “Grand Mercure Ambassador Hotel & Residences Seoul Yongsan” (Yongsan Grand Mercure).

“Incheon Square One,” owned by Shinhan Seobu T&D REIT, is a retail property located in Dongchun-dong, Yeonsu-gu, Incheon, with a Homeplus store currently operating on the first basement level.

According to the investment report for January through March, Shinhan Seobu TND REIT generated 5.39338 billion won in real estate rental income from Incheon Square One in the first quarter of this year. The rental rate per pyeong is 105,453 won.

The REIT’s debt portfolio includes: △ 193 billion won in loans from institutions such as the Korea Development Bank (KDB) (all-in interest rate of 4.59%, maturing on November 27) △ 5.5 billion won in Series 1 convertible bonds (all-in interest rate of 4.0%, maturing on September 5) △ Second Series Convertible Bonds totaling 32.7 billion won (all-in interest rate of 3.0%, maturing on February 26 of next year).

Minimizing Vacancies… Seeking New Tenants

Shinhan West T&D REIT has already received all rent payments from Homeplus through August 22 of this year. It is also in discussions with Homeplus to terminate the lease agreement.

Shinhan Seobu T&D REIT has taken proactive measures to minimize vacancies even after the lease agreement is terminated. It is in discussions with Seobu T&D to secure a new lease agreement for the space, and Seobu T&D is also in talks with several new tenants to operate the space.

If new tenants enter into lease agreements with Seobu T&D in the future, the specific terms of the leases will be determined following approval by the Shinhan Seobu T&D REIT Board of Directors and the General Shareholders’ Meeting, in accordance with relevant laws and regulations.

Shinhan Seobu T&D REIT plans to continue monitoring the situation closely and promptly and transparently notify investors of key developments. Furthermore, the company intends to prioritize stable asset management and enhancing shareholder value as it proceeds with follow-up measures.

A financial investment industry official stated, “The market is closely watching how REITs that own retail stores will respond to the termination of Homeplus’s rehabilitation proceedings,” adding, “This is because the departure of a key tenant could directly impact asset value and dividend stability.”