Lotte Engineering & Construction (Lotte E&C) is working to raise around 1 trillion won ($694 million) through asset sales, including its headquarters, as part of efforts to address the liquidity crisis within the Lotte Group.
According to Lotte E&C on Feb. 27, the company has recently engaged real estate consulting firms to explore options for liquidating assets. It plans to sell its headquarters in Seocho-gu, Seoul, along with warehouse properties in the metropolitan area and shares in rental housing REITs. A company official noted, “We are considering various options to liquidate assets worth around 1 trillion won.”
Lotte E&C plans to finalize the asset liquidation strategy after reviewing the findings from the consulting process.
The headquarters building, which has been used since 1980, is situated between apartment complexes in Jamwon-dong. The property, with potential for residential development, is expected to attract interest from developers and asset management firms. Real estate industry sources estimate the site’s value at about 500 billion won.
If all planned asset sales, including REIT shares, are completed, Lotte E&C is expected to secure around 1 trillion won in liquidity. The Lotte Group, facing a liquidity crisis, has been restructuring its subsidiaries by divesting non-core businesses and selling off inefficient assets.
