Lotte Engineering is expanding its asset management capabilities, built through the operation of Lotte World Tower, to external real estate.
On September 22, Lotte Engineering announced that it has signed a memorandum of understanding (MOU) with global real estate services firm Cushman & Wakefield Korea to collaborate on real estate services.
The two companies plan to jointly explore new business opportunities in asset management (PM), leasing advisory, real estate consulting, and acquisition and sales advisory.
PM involves managing real estate operations, leasing, facility management, and maintenance on behalf of property owners to enhance asset value. Lotte Engineering has developed and currently owns and operates Lotte World Tower and Lotte World Mall, and it also manages the Lotte Center Hanoi in Vietnam.
This collaboration aims to combine Lotte Engineering's building development and operational expertise with Cushman & Wakefield's leasing and investment advisory capabilities.
Lotte Engineering is already expanding its PM business to external assets, managing prime office properties such as Arc Place in Gangnam and Pangyo H Square in Bundang. With this agreement, the company plans to broaden its service offerings from simple building management to include leasing and investment advisory.
According to the Financial Supervisory Service's electronic disclosure system, Lotte Engineering's consolidated revenue for the first half of this year reached 249.8 billion won, a 5.9% increase compared to the same period last year. Operating profit during the same period rose by 34.5% to 61.6 billion won.
The leasing business has driven strong performance, with leasing revenue for the first half of the year totaling 198.7 billion won, a 12% increase from the previous year. The share of leasing revenue in total sales has also risen from 75% to 79.5%. Currently, Lotte World Tower and Mall generate over 350 billion won in annual leasing revenue.
Lotte Engineering is also re-entering the development sector. In March, the company purchased the site of Lotte Chilsung Beverage in Yangpyeong-dong, Yeongdeungpo-gu, Seoul, for 280 billion won, covering approximately 21,217 square meters, and is currently undergoing permitting processes to prepare a development plan.
Jang Jae-hoon, CEO of Lotte Engineering, stated, “Based on our development and operational experience with key assets like Lotte World Tower, we will expand new business opportunities through our collaboration with Cushman & Wakefield Korea.”
* This article has been translated by AI.
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