Busan City Gas Co. Ltd. has decided to sell its headquarters building and the land plot of Mega Mart in Namcheon-dong, Nam-gu.
The land for sale includes the Mega Mart Namcheon branch (21,889m2), Busan City Gas headquarters (6612m2), Outback (1085m2), and VIPS (1010m2).
Busan City Gas. Co. Ltd. owns just the land; the building is held by its lessees. Because the tenant’s land leasing contract was renewed in July, the eviction procedure is expected to take two to three years to complete.
Busan City Gas’s property is near Gwangandaegyo Bridge, offers a magnificent view of the sea, and is close to a metro station and other public transit.
After bidding for the sale of 30,596m2 including land, the consortium of Daewoo Engineering & Construction (Daewoo E&C) and DS Networks was chosen as the preferred bidder.
The consortium plans to create a project finance vehicle (PFV) worth 120 billion won and borrow a total of 690 billion won, including interest and other expenses.
The property is known to cost around 600 billion won to acquire.
*What is a Project Financing Vehicle?
PFV is a paper company that was established and existed for a brief time under the Corporate Tax Accreditation Act.
It is an investment company that fulfills the corporation tax law’s founding conditions and can deduct dividends from project year income when the distributions exceed 90% of the distributable earnings.
