GS Retail, a listed operator of convenience stores, said that it will retain advisors for the sale of real estate holdings owned by its project financing vehicle subsidiary KOCREF G.Square next week.
The retail giant of GS Group said that it will disclose the details after a sales advisor is selected and plans are finalized for liquidation of the real estate.
The company did not disclose as to why and which properties it was selling.
However, news reported that GS Retail has been suffering losses on a commercial building it developed through KOCREF G.Square in Pyeongchon, Gyeonggi Province in 2010, and that the subsidiary has accumulated debt on the real estate.
KB Bank’s real estate trust fund, Industrial Bank of Korea and Korea Development Bank financed the development, according to an audit filing of KOCREF G.Square.
KOCREF has 9.7 billion won (8.5 million) in current liabilities, with current assets of 11.6 billion won as of last year, according to its financial statements.
By Park Hyong-ki (hkp@heraldcorp.com)