Hanssem headquarters in Sangam-dong in Seoul / Courtesy of Hanssem
By Jun Ji-hye
Consideration is concentrated on whether or not IMM Non-public Fairness, which holds the administration rights for Hanssem, a Korean dwelling home equipment and furnishings firm, can restore it to a number one place within the trade. After Hanssem relinquished its prime spot to Hyundai Livart for the primary time ever within the first quarter of this 12 months, IMM took the drastic step of promoting Hanssem’s firm constructing as a substitute of choosing an exit.
On Aug. 30, Hanssem’s board of administrators authorized a plan to promote Hanssem’s headquarters situated in Sangam-dong in Seoul to Gravity Asset Administration for 320 billion received ($240 million). This quantity represents a considerable 30 p.c of Hanssem’s complete property as of the top of final 12 months.
The furnishings model obtained the sale proceeds from Gravity Asset Administration on Tuesday, although it plans to proceed using the present constructing via a sale and leaseback association.
The house furnishing agency bought its present headquarters for 148.5 billion received in 2017, leading to greater than double the revenue after simply seven years.
IMM, which led the sale, collectively acquired a 27.7 p.c stake in Hanssem with Lotte Purchasing for 1.45 trillion received in 2021, turning into the most important mixed shareholder.
The personal fairness agency paid about 222,550 received per share, which was greater than double Hanssem’s inventory worth on the time, because it included a administration rights premium.
Nonetheless, with the actual property market downturn, Hanssem’s efficiency started to say no. In 2022, its income was restricted to 2 trillion received and recorded an working lack of 20 billion received for the primary time.
Hanssem CEO and IMM Non-public Fairness Companion Eugene Kim / Courtesy of IMM Non-public Fairness
In response, IMM appointed its companion and head of operations Eugene Kim as CEO of Hanssem. Since then, the agency has efficiently returned to profitability in 2023, though its income decreased to roughly 1.9 trillion received.
Within the first quarter of this 12 months, Hanssem reported gross sales of 485.9 billion received, shedding its primary place for the primary time to Hyundai Livart, which achieved over 500 billion received in gross sales.
In accordance with funding banking trade officers, the sale of Hanssem’s headquarters has enabled the corporate to achieve time to make a comeback, as IMM has obtained a waiver for monetary covenants from the senior lenders concerned within the acquisition financing of Hanssem.
The lenders reportedly agreed to the waiver, contemplating the development in Hanssem’s monetary scenario because of the sale of its headquarters, in addition to the latest efficiency and potential for future efficiency enhancements.
A Hanssem official mentioned, “Whereas no particular plans have been established for using the 320 billion received we secured this time, the intention is to safe future sources for the corporate’s growth, together with enhancing company worth.”
