D&D Platform REITs successfully concluded their rights offering for existing shareholders (holders of subscription warrants) by achieving a subscription rate of 105% as of the 29th. According to the Financial Supervisory Service’s electronic disclosure, D&D Platform REITs conducted rights offering on December 28-29, targeting a total of 24 million shares. The subscription resulted in 25,196,451 shares being subscribed, marking a 105% subscription rate. Consequently, the capital increase will be finalized without proceeding with a public subscription for forfeited shares.
Through this capital increase, D&D Platform REITs plans to acquire Myeongdong N Building, a new office and retail mixed-use asset located in Myeongdong, Seoul. According to D&D Platform REITs, the purchase price of the asset is 38.5 million KRW per pyeong. The preferred stock price invested by D&D Platform REITs is approximately 35.4 million KRW per pyeong, which is competitive compared to other assets in the area. The cash-on-cash return (CoC) is 6.8%, securing the highest dividend rate among its assets. Their strategy is to ensure stable returns during the operation period while maximizing resale value through active re-tenanting and rent increases to rapidly recover funds.
The success of this subscription was partly due to strategic investment by key shareholder Mirae Asset Management. Mirae Asset Management made a large-scale over-the-counter purchase of 7,453,415 shares of subscription warrants through their blind fund, becoming the largest shareholder after the capital increase.
Choi Ho-jung, CEO of D&D Investment, the operator of D&D Platform REITs, stated, “In a situation where investor sentiment is dampened due to consecutive capital increases by large REITs leading to stock price declines, the success of this subscription demonstrated our presence in the market and sent a positive signal. We will do our best to ensure stable asset management to achieve mutual growth, as we highly value the attractiveness of investment through quality asset acquisition and high dividend rates.”
D&D Platform REITs is the first multi-sector listed REITs in Korea, currently managing approximately 870 billion KRW in assets, including office assets like Semicolon Mullae, Pasto Yongin 1 & 2 Centers, and an Amazon logistics center in Japan. With the inclusion of Myeongdong N Building, the asset management scale will expand to 1 trillion and 45.3 billion KRW. D&D Platform REITs plans to continually expand its managed assets through the acquisition of SK D&D’s development assets and competitive assets in the market.