9 companies have submitted letters of interest (LOI) in the sale of Istum Partners’ 35.09 percent stake in Korea Real Estate Investment Trust (KOREIT). According to reports by Money Today, Shinan Group and Leading Investment & Securities are confirmed as being among the bidders.
In particular, Shinan’s interest in KOREIT is thought to stem from the low performance of some of the financial holdings company’s subsidiaries.
In 2011 KOREIT recorded net profits of 45.2 billion won after experiencing a 42 billion won loss in 2010. In the first quarter of this year, its net profits increased to 16.9 billion won, a 160 percent increase over the previous period last year. This is due to a record 42 billion won in new orders from the period and a decrease in interest expenses. Its debt ratio has also dropped to 72 percent from the 222 percent it reached at the end of 2010.
Istum attempted a sale of its stake last year, which fell through due to bidders pulling out at the last minute. The fund is under pressure to seal the deal this time as it will be expiring in August of 2012.
No related posts.