(As of 05.2017)
The main purposes of KVG1, established under the Real Estate Investment Company Act, include attaining capitals from investors, implementing asset management system to enhance the value and distributing stable and high level of dividends to its investors.
KVG1’s main job is to distribute its profits attained from acquiring and leasing the Kolon Tower Annex, located at 23 Kolon-ro, Gwacheon-si, Gyeonggi-do. Notably KVG1 maintains solid distributions to investors by maintaining lease stability, having Kolon Industry, Inc. as its master lessee.
Investment Attraction Factors and Major Changes in the Asset
The KVG1-owned Kolon Tower Annex is located in a commercial district of Byeolyang-dong, the only area with plentiful accommodations in Gwacheon-si. It also has the proximity benefit, as it is located 100 meters away from the Government Complex Gwacheon Subway Station.
High Investment Value
Gwacheon Kolon Tower Annex Building has a master lease with Kolon Industry, the subordinate common stock shareholder of the property. The contract lease period is continued after the KVG1 asset management period, minimizing the vacancy rate at the time of disposal and leading to the stable sale. In particular, the property was purchased at a price as low as the KOKREF REIT’s, the previous owner, purchasing price, minimizing risk of loss in the investment principals..
In addition, the change in district unit plans, which raised the maximum floor area ratio to 1000%, allowed high profitability sale of this property.
Termination of Management
Management of the company KVG1 was terminated in September 2017
KVG - 1
Entrusted Management Real Estate Investment Trusts Co.,Ltd