Tongyang Life Insurance, Now Under Woori Financial Group, Sells Regional Offices... 'Ilsan, Daegu and Ulsan' Sold [fn Market Watch]

[Financial News] Tongyang Life Insurance has sold three office buildings it owned in Ilsan, Daegu and Ulsan. The move is seen as an effort to liquidate non-core real estate and improve capital efficiency while restructuring its asset portfolio after joining Woori Financial Group.
According to investment-banking (IB) industry sources on the 6th, Tongyang Life Insurance's small- and mid-sized buildings in key hubs across the Seoul metropolitan area and the regions, including Ilsan, Daegu and Ulsan, have been sold. Since joining Woori Financial Group, Tongyang Life Insurance has pursued the sale of assets it owns to restructure its asset portfolio and improve capital efficiency. JLL Korea advised on the sale. 
During the sale process, JLL Korea closely analyzed each property's location, leasing status and potential uses, then developed differentiated sale strategies tailored to the needs of individual buyers. As a result, the Ilsan and Daegu office buildings were sold to investors seeking income-generating opportunities based on their competitive locations and stable rental income. The Ulsan office building was sold to buyers, including hospitals, who intended to use the property themselves and placed a high value on its potential uses.
According to JLL, the commercial real estate market has been significantly affected by changes in the financing environment stemming from geopolitical risks, inflation and sharp interest-rate fluctuations. Amid this uncertainty, companies and asset owners have continued to show interest in restructuring their real estate portfolios, selling assets with low investment efficiency and liquidating held assets. In South Korea's commercial real estate market, transactions have continued, particularly involving small- and mid-sized assets with relatively lower financing burdens. As a result, it has become increasingly important to accurately understand each asset's characteristics and the buyer's investment objectives and to develop appropriate acquisition and sale strategies.
Suok Kim, managing director of JLL Korea's Capital Markets Small- and Mid-sized Team, emphasized, "Investor interest in the small- and mid-sized building market has recently become more segmented according to the individual characteristics and investment appeal of each asset. We will continue to develop sale strategies tailored to each asset's characteristics and identify suitable investors through accumulated market data and customized solutions."
Meanwhile, real estate IB industry officials assessed that, unlike large office properties, small- and mid-sized buildings continue to attract transaction demand because they carry relatively lower financing burdens and are accessible to both investors and owner-users. An IB industry source said, "More companies are selling headquarters buildings with low utilization or non-core assets to secure cash rather than simply waiting for real estate prices to rise. The fact that small- and mid-sized assets can broaden the pool of potential buyers beyond institutional investors to include corporations and owner-users is also favorable to closing transactions."

[email protected] Kang Gu-gwi Reporter