D&D Platform REIT Raises Semicolon Susong Stake to 46%... Reallocates Capital Through Corporate Bond Investment

[Financial News] D&D Platform REIT has begun actively reallocating capital using the large investment principal secured through the sale of Semicolon Mullae.
D&D Platform REIT said on the 1st that it used 100 billion won of the 213 billion won in investment principal recovered after completing the sale of Semicolon Mullae in July to repay its own unsecured privately placed corporate bonds and electronic short-term bonds. On September 30, it completed the additional acquisition of 56.5 billion won worth of Class 2 shares in Semicolon Susong REIT, sharply increasing its stake in the company from 17% to approximately 46%.
Of the remaining funds, 52 billion won will be used to purchase corporate bonds issued by Semicolon Susong REIT, with the proceeds being used to fully repay its existing mezzanine loan. The bonds have a coupon rate of 6.0% per year, the same as the existing mezzanine loan. This structure keeps the subsidiary REIT's actual interest burden unchanged while allowing D&D Platform REIT, the master REIT, to earn stable interest income through April 2027, when the bonds mature.
Alongside the capital reallocation, D&D Platform REIT is pursuing improvements to its leases, including the realignment of its effective net occupancy cost (E.NOC). Ahead of the expiration of its major tenant SK ecoplant's lease in the second half of 2027, it is negotiating new lease terms with SK affiliates. The company expects annual net operating income (NOI) to increase by more than 30% from its existing plan as a result.
In addition, if the asset is revalued following the lease improvements—with a target appraised value of approximately 650 billion won—the company plans to refinance the debt with a new senior secured loan when the corporate bonds mature next April. It will then ultimately recover the 52 billion won in investment principal.
A D&D Platform REIT official said, "We sought to secure dividend capacity by managing the sale proceeds stably until making new investments amid uncertainty over funding conditions caused by rising market interest rates." The official emphasized, "We will do our utmost to enhance shareholder returns by simultaneously improving the subsidiary REIT's financial structure and securing the master REIT's profitability."
The company added that the acquisition of Semicolon Susong REIT's corporate bonds and the capital reallocation would not affect a separate special dividend plan funded by the gains from the sale of Semicolon Mullae.
[email protected] Jeon Min-kyung Reporter