이 기사는 2021년 07월 09일 07:30 thebell 에 표출된 기사입니다.

Emart Inc is considering selling its head office building in Seongsu-dong, east of Seoul, as the hypermarket operator steps up efforts to monetize its real estate assets to free up cash to invest in ecommerce.

In response to media reports that Emart hired a real estate advisory firm to help sell its head office building, the company said in a filing on Wednesday that it has been considering options for an efficient use of assets but “nothing has been finalized”.

The building, which Emart has used as its headquarters since 2008, is symbolically important for the company as it has grown to the country’s No. 1 supermarket chain over this period.

The value of the building and the land has increased substantially for the past dozen years on the back of the development of the district. A full monetization of these assets is expected to raise as much as 1.5 trillion won ($1.3 billion).

The land spans around 15,000 square meters. The head office building and Emart’s Seongsu branch are on it with a total floor space of 99,000 square meters. The book value of these assets totals 96 billion won, one of the highest among more than 160 outlets carried on the company’s balance sheet.

Emart considering a sale of its head office building signifies the retail giant’s commitment to raising money to invest in future growth opportunities amid the fast-changing business landscape.

Emart’s monetization efforts began in 2019. That year, the company raised 1 trillion won through a sale and leaseback of its 13 stores. It sold land in Magok and Jangchung districts in Seoul to raise 1 trillion won in 2020 and raised 700 billion won through a sale of its Gayang outlet earlier this year.

Emart’s cash needs are expected to increase as the company last month agreed to buy 80% of eBay Korea, which operates open market platforms Gmarket and Auction, for 3.44 trillion won. After the deal was announced, Emart revealed a plan to invest about 1 trillion won in logistics infrastructure in the coming four years. But industry experts think the amount falls far short of what is needed to compete with online retail rivals.

Emart is expected to continue efforts to monetize its real estate assets to meet its cash needs. It currently owns about 80% of its more than 160 outlets. (Reporting by Hyo-jeom Jun)