KVG H - 4
Corporate Restructuring Real Estate Investment Trusts Co.,Ltd
(As of 03.2020)
KVG H-4 was established in accordance with the Real Estate Investment Company Act for the purposes of providing attractive returns and means of avoiding risks
to the investors, ultimately contributing to establish and activate indirect investments in Korea. .
Its main roles can be summarized into the categories of acquisition, operation and disposal. First, the company started management by making purchase of the Aventree Hotel in Jongno at the optimal time. Second, it has been stable incomes by contracting OURHOME as its operating company, and A.I.M’s tenant management strategies including the profit source development, the efficient expense management and the maintenance of organized and transparent management systems have been allowing enhancements in the hotel’s asset value. Third, we hold disposal principles for driving up the profitability by selling the property at approximately 5 years after the purchase for the optimal price.
Investment Attraction Factors and Major Changes in the Asset
The Aventree Hotel, owned by KVG H-4, is located in front of Insa-dong and in a core CBD of Seoul. Therefore, it allows convenient travelling to major areas in Seoul by walk or subway. It is preferred by foreign tourists due to its location next to the station for Incheon Airport buses and close to the SM Duty Free Shop.
Because the contract links our rent revenue to the hotel’s revenues and enforces a minimum rent amount at the same time, we established opportunities for increased rent fees while preventing the risk of loss in our own revenues. This can be viewed as attaining both the preferred stock’s stability and the common stock’s profitability
Moreover, considering that Gongpyeong and Cheongjin districts nearby are being developed in accordance to the office-focused Urban Redevelopment Projects, the demand for upscale hotels is likely to rise continuously.