[Edaily Marketin KIM SUNG-SOO Reporter] A project to develop an office building in a prime location in Seongsu-dong, Seoul, is moving full steam ahead. Located a 3-minute walk from Ttukseom Station on Subway Line 2, this project is being spearheaded by a real estate development equity blind fund established by Shinhan Asset Management.

Amid growing focus on bolstering equity capital in the real estate project financing (PF) market, this fund has participated with the aim of improving the financial structure of the development project.

Shinhan Asset Management’s “RE-Balancing Fund” Holds 79% Stake in the Project

According to the Seoul Metropolitan Government on the 21st, the Authorization Subcommittee of the 9th Joint Committee on Urban Planning and Architecture, held on the 14th, conditionally approved the “Proposal to Review the Adequacy of Infrastructure in the Area Around 656 Seongsu-dong 1-ga, Seongdong-gu, within the Seongsu Semi-Industrial Zone District Unit Planning Area.”

The project site is located in Seongsu-dong 1-ga, Seongdong-gu, Seoul, with a lot area of 2,275 square meters. It is situated in a light industrial zone along Wangsimni-ro, a 3-minute walk from Ttukseom Station on Subway Line 2 and a 9-minute walk from Seoul Forest Station on the Suin-Bundang Line. Even within Seongsu-dong, where office facilities and cultural spaces are rapidly increasing, this location offers excellent transportation accessibility.

According to the architectural plan, the site will feature office facilities and neighborhood commercial facilities spanning six basement levels and 11 above-ground levels, with a total height of 66.4 meters. The floor area ratio (FAR) is planned at approximately 560%, reflecting incentives for introducing recommended business types within the Development Promotion District and for providing public open spaces.

The upper floors, starting from the second floor, will house business facilities such as software development and distribution companies, computer and peripheral device manufacturers, and design firms. This is expected to actively address the growing demand for the information technology (IT) industry in the Seongsu area.

The project is being implemented by DDI SF PFV. A notable aspect of the ownership structure is that Shinhan Asset Management’s “Shinhan RE Balancing General Private Real Estate Investment Trust No. 1” holds the position of largest shareholder.

The trustee for the “Shinhan RE-Balancing General Private Real Estate Investment Trust No. 1” is IBK Industrial Bank of Korea, which holds 79.0% of the common stock in DDI SF PFV. Following that, the following entities hold stakes in the PFV in the following order: △SK D&D (15.8% of common stock), △Hyundai Motor Securities (5.0% of Class 1 preferred stock), and △Shinhan Asset Management (0.2% of Class 1 preferred stock).

184 billion won loan agreement… matures in November 2028

The RE Rebalancing Fund, a key investor in the project, is a blind private equity fund that focuses on equity investments in real estate development projects. As its name—a combination of “Rebalancing” and “Real Estate”—suggests, the fund focuses on improving the financial structure of real estate development projects by increasing their equity ratios.

Domestic real estate development projects have long been criticized for their high reliance on debt and low equity ratios. The government’s efforts to reform the real estate project financing (PF) system also emphasize expanding project equity and enhancing the soundness of financial structures.

The RE-Balancing Fund was established as an investment vehicle to supply equity capital to development projects in response to these market changes. The Seongsu-dong project also follows a structure in which the Shinhan Asset Management fund holds a controlling stake in the project entity.

In accordance with a loan agreement signed last September, D.I.S.F. PFV received loans totaling up to 184 billion won from multiple lenders. These loans are divided into △ Tranche A (157 billion won) and △ Tranche B (27 billion won). In the event of collateral enforcement or repayment, Tranche A loans take priority over Tranche B loans. The loan maturity date is set for November 25, 2028.

This project combines the prime location near a subway station in Seongsu-dong and the potential for growing demand for office space with an equity-driven investment structure and favorable loan terms.

A real estate industry official stated, “The pace of the project’s progress will likely depend on follow-up procedures after obtaining permits, the actual construction start date, and whether rental demand can be secured,” adding, “As Seongsu-dong transforms into an area that integrates office, commercial, and cultural functions, it remains to be seen whether the office development near Ttukseom Station will lead to a new supply of office space.”