[Exclusive] “SK hynix bonuses also lift valuation” ... Mirae Asset puts Lotte Mart Icheon Branch up for sale [fn Market Watch]

[Financial News]  Mirae Asset Global Investments has launched the sale of Lotte Mart Icheon Branch. With the hypermarket investment market having remained depressed for years amid the expansion of online retail, the transaction is drawing attention as an exit that combines Lotte Shopping’s lease commitment with the consumer spending power of the Icheon area, which is centered around SK hynix. It is more than a simple retail asset sale.
According to investment banking and real estate industry sources on the 25th, Mirae Asset Maps Retail General Private Real Estate Investment Trust No. 1 has recently begun the sale of Lotte Mart Icheon Branch in Anheung-dong, Icheon City, Gyeonggi Province. Savills Korea is serving as the sole sale adviser.
Lotte Mart Icheon Branch is located at 474 Anheung-dong, Icheon City. The total site area is 12,849 square meters, of which the ownership interest being offered for sale covers 2,093 square meters. The gross floor area of the retail facilities is 39,316 square meters, spanning three basement levels and five above-ground floors. Completed in December 2018, the property has 570 parking spaces. Lotte Shopping has a 100% lease commitment for the retail facilities.
The key feature of the deal is considered to be the “lease structure” rather than the building itself. Lotte Shopping previously signed a full lease commitment for 10 years beginning in April 2019. The current weighted average lease expiry (WALE) is 2 years and 8 months. The lease can be extended for another 10 years after it expires.
In particular, the property uses a triple-net structure under which the tenant bears facility management (FM) costs, water and utility charges, repair and maintenance costs, insurance premiums, taxes and public charges including property taxes, and capital expenditures (CAPEX). With interest rates and operating costs rising, the structure allows buyers to pass a substantial portion of cost volatility on to the tenant. Lotte Shopping also holds a right of first refusal that can be exercised once.
The point investors will examine most closely, however, is whether Lotte Shopping can extend its lease after 2029. Since the remaining lease term itself is not long, how strategically Lotte Shopping uses the store could have a significant impact on the sale price and required yield.
An industry source in the retail sector said, “Lotte Mart Icheon Branch is an operating location for Lotte Shopping’s online grocery platform ‘Lotte Mart Zeta (Zetta),’ which it runs to strengthen its online grocery competitiveness. It is a differentiated store because it serves not only as an offline outlet but also as a hub for online orders and deliveries.” 
The consumer spending power generated by SK hynix in the region is also regarded as another investment point in the sale.
According to an analysis by the Bank of Korea (BOK), monthly consumption in areas with high concentrations of semiconductor companies, including Icheon, Hwaseong and Cheongju, was up to about 4% higher than in areas that did not benefit after performance bonuses were paid. As of June this year, the gap stood at about 3.7%. Monthly sales at Lotte Mart Icheon Branch also rebounded to their highest level in the past two years at the end of 2025.
A source in the real estate investment banking industry noted, “Investors have no choice but to take a conservative view when looking only at hypermarkets as an asset type. However, if the lease commitment from a highly creditworthy tenant is backed by regional consumer spending power and housing supply, a pricing rationale different from that of ordinary regional retail assets could emerge.”
Another source in the investment banking industry added, “Lotte Shopping’s lease commitment and the triple-net structure are aspects that investors may find attractive. With 2 years and 8 months remaining on the lease, the possibility of an extension and the consumption base in the Icheon area will be key variables determining the price.” 


[email protected] Kim Kyung-ah Reporter