Shinsegae named preferred bidder for running Coex Mall

[THE INVESTOR] Shinsegae Property, a subsidiary of E-Mart, was named the preferred bidder for rights to run Coex Mall over the next 10 years, Shinsegae Group said on July 29. 

Mainly, Shinsegae Property would be overseeing Coex Mall and also CALT shopping arcade -- both owned by Korea International Trade Association. Up to 327 shops are currently in operation in the mall areas.  

According to media reports, Shinsegae Property was the only bidder for the contract.

An official agreement will be signed next month and “we will respect the existing contracts of the leases,” said Shinsegae Property.

Shinsegae Property aims to create synergy with Shinsegae Department Store in southern Seoul and mega shopping complex Starfield, slated to open in Hanam, Gyeonggi Province, in September.

“We will do the best to provide differentiated shopping experiences adding Shinseagae Property’s real estate development and management skills to the group’s distribution know-how,” said Im Yeong-rok, vice president of the company that is in charge of the retail giant’s shopping complexes.

Han Moo Shopping, which was reportedly the most likely to win the bid, had decided not to participate in the bidding as the “master lease” for the shopping arcades costs too much. 

KITA asked the contractor to pay 60 billion won (US$53.29 million) as a commission every year but the revenue from lease of the shopping mall last year was barely over 50 billion won.

By Hwang You-mee (glamazon@heraldcorp.com)