Shinhan to acquire 60% stake in REIT firm Asia Trust

Shinhan Financial Group is set to enter the real estate investment trust (REIT) business by acquiring a controlling stake in Asia Trust, a local REIT company.

The country’s second largest financial group reported its plan to acquire the trust company to the Financial Services Commission on Monday, according to a source at Shinhan.

Multiple media outlets said that Shinhan is seeking to obtain a 60 percent stake for 160 billion won ($141 million), though Shinhan declined to comment on specifics.

“We are in the final stage of the takeover deal,” the source said. “But details like shares and prices have yet to be decided.”

REIT businesses own, operate or finance income-producing real estate to achieve predetermined returns for investors. The sector has grown in the country as Korea has seen a housing market boom in select regions over recent years.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]