"Beyond Lotte World Tower..." Lotte Property & Development partners with Cushman & Wakefield Korea to expand its third-party property management business [fn Market Watch]

[Financial News] Lotte Property & Development is expanding its push into the third-party property management (PM) market by partnering with global real estate services firm Cushman & Wakefield Korea. The strategy combines Lotte Property & Development's expertise from directly operating Lotte World Tower and Lotte World Mall with Cushman's global advisory and transaction network.
According to investment banking (IB) sources on the 22nd, Cushman & Wakefield Korea and Lotte Property & Development signed an MOU to cooperate strategically in property management and real estate advisory services for major domestic landmarks and large-scale mixed-use facilities.
The agreement goes beyond a simple PM partnership. The two companies will jointly identify business opportunities spanning property management, leasing advisory, consulting, investment, and acquisition and disposition advisory. Their goal is to establish an integrated service platform linking the operation, leasing, and transactions of large-scale real estate assets.
Lotte Property & Development's expansion of its third-party PM business is drawing particular attention. Building on its experience operating Lotte World Tower and Lotte World Mall, the company has expanded beyond group-affiliated assets into the broader market. It currently handles PM assignments for prime offices including Pangyo H Square and Arc Place. The company also has experience operating Lotte Center Hanoi in Vietnam.
Cushman will contribute its global investor network and expertise in leasing, investment, and acquisition and disposition advisory. By combining Lotte Property & Development's ability to operate large-scale mixed-use facilities with Cushman's transaction and consulting capabilities, the partners aim to win mandates for new landmark assets.
A real estate IB industry source said, "Competition in the PM market has recently shifted from simple facility management toward improving occupancy rates, operational efficiency, and eventual sale value." The source added, "For larger assets, the ability to provide operations, leasing, and transaction advisory services together will determine competitiveness in winning mandates."
Richard Hwang, CEO of Cushman & Wakefield Korea, said, "By combining the expertise and market experience of both companies, we will provide differentiated real estate solutions."
Jang Jae-hoon, CEO of Lotte Property & Development, added, "We will expand new business opportunities based on our experience developing and operating major assets." 
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