'Pangyo Alpharium Tower' to Improve ESG Performance Through Energy Efficiency [fn Market Watch]

[Financial News] Mastern Investment Management is launching efforts to reduce operating costs and improve ESG performance at Pangyo Alpharium Tower, a trophy asset near Pangyo Station. The company plans to work with the world’s leading environmental services provider, proceeding step by step from on-site technical assessments to the development of tailored energy-saving measures.
According to investment banking industry sources on the 7th, alternative investment manager Mastern Investment Management signed an MOU with Veolia Korea at its headquarters in Seocho-gu, Seoul, on the 4th to jointly pursue an energy-efficiency project for Pangyo Alpharium Tower. Lee Tae-kyung, head of Mastern Investment Management’s domestic investment division, and Gilles Yild, executive vice president of Veolia Korea’s energy business division, attended the signing ceremony.
Pangyo Alpharium Tower, the subject of the agreement, is a large office complex consisting of two buildings in Pangyo Alpha Dome City, with a combined gross floor area of 112,254 square meters. Located next to Pangyo Station, served by the Shinbundang and Gyeonggang lines, it is regarded as a representative asset in the Pangyo area, supported by strong tenant demand from IT and technology companies. Pangyo has developed a leasing market comparable to Seoul’s three major business districts, with its vacancy rate fluctuating in the 1% range. As a result, even improvements in operating efficiency alone could significantly boost returns, analysts say.
The two companies plan to conduct an on-site technical assessment of Pangyo Alpharium Tower, develop tailored savings measures such as optimizing the operation of heat-source and HVAC systems, and then discuss signing a definitive agreement based on the findings. Utilities costs typically account for a substantial share of operating expenses at large office buildings, so reducing energy consumption can immediately improve net operating income (NOI). It can also have a favorable effect on valuation when the asset is sold.
Veolia Group is the world’s leading environmental services company in water treatment, waste management, and energy management. Founded in France in 1853, it provides environmental solutions in 58 countries and is expanding beyond hospitals and industrial facilities into office buildings.
Lee Tae-kyung said, "This is a meaningful effort to improve both the energy efficiency and ESG competitiveness of managed assets by working with a global environmental services specialist." He added, "Starting with Pangyo Alpharium Tower, we will consider expanding the application of this eco-friendly energy management model to other managed assets."
Gilles Yild added, "It is meaningful to partner with Mastern and provide sustainable innovation solutions for major real estate assets." He continued, "Drawing on our global expertise, we will create long-term value for stakeholders."
Meanwhile, Mastern Investment Management plans to use the savings achieved through the agreement to respond to global ESG assessments, including GRESB and Leadership in Energy and Environmental Design (LEED), and to enhance asset value.
[email protected] Kang Gu-gwi Reporter