HDC finalizes acquisition of Real Estate 114 in a board meeting on January 4th

- HDC plans to create synergy by enhancing its existing business and expanding its value chain in the construction sector through the acquisition of Real Estate 114.
- HDC is expected to facilitate linkage of business within the group and strategic M&As in an effort to make a leap forward as a comprehensive realty and infrastructure group.

In a board meeting held on January 4th, HDC (CEO Dae Chul Kim) finalized acquisition of Real Estate 114.

Real Estate 114, Korea’s representative web portal specialized in real estate, is equipped with a vast database on realty markets and a wide range of networks. It has gained trust not only from the general public but also from the media, academia, financial circles and the government based on its excellent analytical power and research results. The main business areas it addresses include a platform to register offerings, data sale, research/consulting, and leasing services. As of the end of 2017, its main assets included 20 billion KRW worth of cash and cash equivalents and a Pangyo Office Building owned, rented, managed and operated by Real Estate 114.

This acquisition has led HDC to develop plans to strengthen its existing business through the use of big data on realty and information on realty development, creating synergy through the expansion of its value chain in the construction industry in various sectors, ranging from realty management, operation, financial services and realty consulting to reform business.

The total cost of the takeover was 63.7 billion KRW, and HDC and its affiliate HDC I CONTROLS took part in the takeover at a rate of 8 to 2 (51.3 billion KRW and 12.4 billion KRW, respectively). A contract will be drawn up on January 10th.

HDC has been applying the spur to the establishment of a differentiated business portfolio in order to make a leap forward as a comprehensive realty and infrastructure group. In his New Year’s speech given on January 2nd, CEO Kim said, “We will go beyond hardware elements in the construction and realty sectors and expand our business into new services and content, featuring logistics, distribution and B2C. Toward this end, we will focus on linking business within the group, establish cross-industrial partnerships, and facilitate strategic M&As.”