Asiana Airlines, Kumho Industrial sell off landmark building in Vietnam

Asiana Airlines Inc., South Korea's No. 2 flag carrier, said Thursday it has sold a 50 percent stake in Kumho Asiana Plaza, a Vietnamese landmark building, to Saigon Boulevard Holdings Pte. Ltd as part of its efforts to improve its financial health.

The $107.5 million deal was completed between the carrier and the affiliate of Singaporean property developer Mapletree Investments Pte earlier in the day, an official of Asiana Airlines said.

Kumho Asiana Plaza built by Kumho Industrial Co., the construction unit of Kumho Asiana Group, in Ho Chi Minh City houses a hotel, a residence and business offices.

The carrier said the deal generated 50.9 billion won ($44 million) in profit, which could help improve its financial situation and secure liquidity.

Asiana Airlines, a flagship unit of Kumho Asiana Group, reported a capital impairment ratio of 35 percent last year, up from 18.5 percent in 2014. The carrier has suffered capital erosion in the past five years.

Meanwhile, Kumho Industrial, the co-owner of the Vietnamese building, said it also sold its 50 percent stake in Kumho Asiana Plaza to Saigon Boulevard Holdings Pte. at the same amount of money. (Yonhap)