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SK REIT Struggles with Financing and Increased Borrowing Burden

2022. 11. 02 · Simok Kim
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Providing Up-to-date news and contents of Korean commercial real estate market including investment, REITs and market players.

SK REIT is concentrating all its efforts on acquiring Jongno Tower, but not everything is going smoothly. Corporate bonds, convertible bonds, electronic short-term bonds are struggling in the current market. The plan to prepare short-term electronic bonds worth around KRW 333 billion (planned) is progressing more slowly than expected. Last week, SK REIT offered 5.3% as the interest rate for electronic short-term bonds, but the effort was unsuccessful. The rate was raised to 5.5% to meet demand. As the issuance of electronic short-term bonds was delayed, as the core strategy of the Jongno Tower acquisition, was delayed, the REIT acquisition schedule was also postponed from the 13th to the 18th. […]

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