[Edaily Marketin Reporter KIM SUNG-SOO ] Samsung FN REIT has refinanced the 520 billion won in debt it raised to acquire the “FN Tower Dangsan” (formerly A-One Tower Dangsan) office building in Yeongdeungpo-gu, Seoul, by converting it into a senior secured loan, thereby extending the maturity by two years.

This move reflects the company’s strategy of streamlining its existing debt structure while continuing to acquire assets without conducting a large-scale capital increase. Through this refinancing, Samsung FN REIT has extended the maturity of the short-term funds used to purchase FN Tower Dangsan until September 2028, providing greater flexibility in managing its funds over the next two years.

Secured by Three Assets: ‘FN Tower Daechi, Sunhwa, and Dangsan’

According to the financial investment industry on the 30th, Samsung FN REIT recently secured a 520 billion won senior secured loan to fully refinance its existing debt on “FN Tower Dangsan

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(formerly A-One Tower Dangsan) in Yeongdeungpo-gu, Seoul.

The lending institutions involved were IBK Industrial Bank of Korea, KB Kookmin Bank, NH Nonghyup Bank, and Hana Bank. The interest rate is structured as the all-in negotiable certificate of deposit (CD) rate plus 1.3 percentage points (p), and the maturity date is September 28, 2028.

Prior to this refinancing, Samsung FN REIT raised a total of 520 billion won to acquire FN Tower Dangsan (then known as A-One Tower Dangsan) from NH All-One REIT. Of this amount, 430 billion won was secured through a secured loan, while the remaining 90 billion won was raised by issuing electronic short-term bonds (ESTBs) at an annual interest rate of 4.10%.

KB Securities, NH Investment & Securities, Hana Securities, and Korea Investment & Securities participated as underwriters for the short-term notes.

As the maturity date for these short-term notes fell on the 28th, Samsung FN REIT secured a 520 billion won senior secured loan using three assets held as underlying assets—△FN Tower Daechi, △FN Tower Sunhwa, and △FN Tower Dangsan—as collateral.

FN Tower Daechi is an office building located at 424 Teheran-ro, Gangnam-gu, Seoul, comprising 6 basement levels and 20 above-ground floors, with a total floor area of 45,191.76 square meters.

FN Tower Sunhwa is located at 25 Sejong-daero 7-gil, Jung-gu, Seoul; it has 9 basement levels and 20 above-ground floors, with a gross floor area of 27,611.50 square meters. FN Tower Dangsan is located at 559 Gukhoe-daero, Yeongdeungpo-gu, Seoul; it has 6 basement levels and 17 above-ground floors, with a gross floor area of 27,991.94 square meters.

No Large-Scale Capital Increases… Reduced Pressure from Stock Price Volatility

Samsung FN REIT participated in the bidding for A-One Tower Dangsan (now FN Tower Dangsan) last April, was selected as the preferred bidder, and closed the deal on the 13th of last month.

On March 16, it finalized the sale of the Samsung Life Insurance Jamsil Building (now FN Tower Jamsil), and this bid was pursued based on the assessment that it could acquire one more asset in the first half of this year.

Samsung FN REIT’s decision to acquire FN Tower Dangsan was based on a strategy that took into account both asset size and financing burdens.

Although FN Tower Dangsan is located in a non-core business district—rather than in key business districts such as Gangnam, Yeouido, or Gwanghwamun—it was seen as an advantage because, given the company’s financial and asset scale, it could be acquired without a large-scale capital increase.

If Samsung FN REIT were to acquire prime office assets in core business districts, a large-scale capital increase might be necessary. The company explained that it chose FN Tower Dangsan, which entails a relatively lower financial burden, because acquiring assets in those districts could lead to increased stock price volatility due to the issuance of new shares.

The administrative burden was also minimal. The scale of the FN Tower Dangsan inclusion falls within 30% of Samsung FN REIT’s total assets, allowing the inclusion process to proceed with a simple change report rather than requiring amended approval from the Ministry of Land, Infrastructure and Transport.

“Amendment approval from the Ministry of Land, Infrastructure and Transport” refers to the administrative procedure of obtaining renewed approval from the Ministry—the competent authority—when there are changes to major land and transportation projects, such as previously approved urban development projects, implementation plans, or the registration of REIT asset management companies.

With the acquisition of FN Tower Dangsan, Samsung FN REIT’s asset size expanded to approximately 1.25 trillion won, significantly surpassing the 1 trillion won mark. This has laid the groundwork for the REIT to pursue even larger-scale, high-quality assets in the future.

An official in the financial investment industry stated, “Samsung FN REIT has restructured its financing by incorporating assets with relatively low capital burdens and converting existing debt into stable senior secured loans,” adding, “With this refinancing, the maturity of the short-term funds used to acquire FN Tower Dangsan has been extended to September 2028, providing greater flexibility in cash management for the next two years.”