Investors keen to lay their hands on South Korean retail properties may soon be able to do so via a cross-border REIT. South Korean department store operator Lotte Shopping Company Limited is reportedly planning a REIT listing in Singapore to raise between S$800 million to S$1 billion.

Should it list Lotte Shopping will be the first South Korean REIT to list in Singapore. Photo by Wikimedia Commons.

The REIT could list as early as this year and will be managed by DBS, Goldman Sachs, Nomura and Standard Chartered. This is based on unconfirmed reports by Thomson Reuters publication IFR. The management has reportedly chosen Singapore due to its highly liquid REIT market as compared to South Korea.

The intended REIT is expected to be largely retail in nature. Lotte Shopping Company has a total of eight business units all of which are geared towards the consumer retail segment including Lotte Department Store, discount outlets chain Lotte Mart and grocery chain Lotte Super. The majority of its outlets within South Korea is located within the Seoul National Capital Area.

Lotte Shopping was established back in 1979 when it opened its first department store. The company has since grown into a retail giant with a chain of some 31 department stores, 91 cinema premises and various other forms of retail outfits within South Korea and overseas including Vietnam, Russia, Indonesia and China. However there are no further details on the number of properties that will be included in the REIT or if it will be injected with any of its foreign properties.

REITSWEEK has gotten in touch with the management of Lotte Shopping Company Limited and will be providing further details once they are available.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.