Lotte E&C’s headquarters in Seoul / Yonhap
An growing variety of main building companies have put their property up on the market amid a protracted trade hunch, induced primarily by excessive rates of interest and commodity costs. Their obvious makes an attempt to safe liquidity got here as considerations have grown additional after at the least 5 medium-sized building companies right here have already gone bankrupt throughout the first couple months of this yr.
In response to trade officers, Lotte E&C requested a number of consulting companies to overview the profitability of its plan to promote the positioning for its headquarters in southern Seoul’s prosperous Seocho District, in addition to its different properties, to safe round 1 trillion received ($685 million) in money.
„Via the most recent consulting, we’ll speed up our efforts to spice up effectivity,“ a Lotte E&C official mentioned.
Because the circulation of a rumor late final yr that the group’s cash-strapped building and petrochemical models would lead it to declare a moratorium, Lotte Group has been making an attempt to unload noncore property of its associates.
The conglomerate, nevertheless, emphasised that it isn’t in pressing must safe liquidity, dismissing considerations about its monetary stability.
SK ecoplant is alleged to have met with a number of personal fairness companies to speak about promoting its controlling stakes in waste administration subsidiaries. The development unit of SK Group can be dealing with a rumor that it seeks to promote SK oceanplant, a subsidiary manufacturing substructures for offshore wind generators.
Though SK ecoplant mentioned nothing has been determined relating to the gross sales of its subsidiaries, the corporate has not too long ago tried to cut back prices by workforce downsizing and its deliberate relocation of headquarters from downtown Seoul to the town’s southwestern space in 2027. Late final yr, SK ecoplant additionally bought its two subsidiaries that recycle waste plastic.
GS E&C, the development unit of GS Group, has sought to promote its controlling stake in GS Inima Setting, a Spanish water therapy firm, which is evaluated at round 1.5 trillion received.
DL E&C, which bought its headquarters constructing in downtown Seoul for 130 billion received in November, plans to maneuver to the westernmost a part of the town by the tip of this yr. DL Group, the development agency’s dad or mum, additionally put its three resort buildings up on the market.
„We should always give up pointless investments and decrease fastened prices,“ DL E&C CEO Park Sang-shin advised workers earlier this yr.
In response to the Ministry of Land, Infrastructure and Transport, the variety of building companies that went out of enterprise through the first two months of this yr reached 84. Medium-sized building companies that filed for courtroom receiverships this yr embody Shindonga Development, Daejeo Development, Sambu Development, Angang E&C and DSME Development.
