Vivien Selects Samjong KPMG as Sales Advisor... Begins Liquidation of Yongsan Headquarters and Busan Assets

South Korean fashion company VIVIEN is seeking to improve its financial structure through the sale of owned real estate. The company plans to liquidate non-core assets by selling its headquarters in Yongsan, Seoul, and a neighborhood living facility in Gwangbok-dong, Busan, in order to secure cash and reduce financial burdens.

On August 27, VIVIEN announced that it had selected Samjong KPMG as the sales advisor and initiated related procedures to push forward with the sale of its headquarters located in Yongsan-gu, Seoul, and the neighborhood living facility located in Gwangbok-dong, Jung-gu, Busan.

Specific transaction terms, timelines, and sale price will be determined in the future based on negotiations and the progress of the process. VIVIEN stated that it plans to conduct the sales with comprehensive consideration of each asset’s characteristics, transaction stability, and data security.

The Yongsan headquarters to be sold is an office asset with a total floor area of approximately 3,177 pyeong, spanning from three underground levels to ten floors above ground. The current building has a floor area ratio (FAR) of about 357%. According to the company, it is a rare asset due to the difference between this FAR and the FAR allowed in the area under current regulations.

In particular, its proximity to key development zones such as the Yongsan International Business District and Yongsan Park is mentioned as increasing the potential for rise in location value following future nearby development. VIVIEN intends to review the possibility of the sale with a wide range of potential buyers, including corporations and organizations intending to use the facility themselves.

The Gwangbok-dong asset in Busan is a neighborhood living facility with a total floor area of about 523 pyeong, and five above-ground floors. It is located in a general commercial area and is close to major tourism and commercial districts in Busan’s old downtown, such as Nampo-dong and the Busan International Film Festival (BIFF) Square.

The company evaluates that, when simply comparing the legal FAR with the FAR of the existing building, there may be additional room to utilize the FAR. However, the actual scale and purpose of possible extension or development will depend on forthcoming detailed reviews of relevant laws, city planning, structural safety, and permits and licenses.

VIVIEN plans to work with the sales advisor to comprehensively review each asset’s potential uses and market value and to establish the optimal transaction conditions.

A VIVIEN official stated, “The Yongsan and Busan assets are non-core real estate properties, each with their own unique location features and development potential. We will review objective market demand and transaction terms through a professional sales advisor and proceed with the sale in the way that is most advantageous to the company.”

The key to this asset sale is to secure cash and improve financial soundness through real estate securitization. The specific sale price and the actual amount of funds raised will be determined based on future transaction terms.

VIVIEN’s strategy is to efficiently manage non-core assets to ease financial burdens and secure a stable business foundation.

Vivien CEO Son Youngsub said, “We will carry out this asset sale without a hitch to maximize the efficiency of fund management and strongly enhance our financial soundness. Through practical improvements in cash flow, we will completely resolve any financial uncertainties.”

This content was produced with the assistance of AI translation services.