Kasa Korea Cheonan distribution center offering sells in a day

Distribution center in Cheonan, South Chungcheong, that will start trading on Kasa Korea on June 29. [KASA KOREA]

Kasa Korea said shares in a distribution center in Cheonan in South Chungcheong sold out on the first day they were offered.

Kasa Korea is a real estate securities trading site that allows users to purchase and trade fractional ownership of buildings on its mobile app. The company issues digital asset-backed securities that represent shares in a building and sells them to investors.

The company said 12 billion won ($9.3 million)-worth of the securities were sold to 2,966 people last Thursday. Trading in those shares of the distribution center will start on June 29. The first dividend date for the shares is Aug. 31.

The distribution center has an average 4 percent annual return, said Kasa Korea. It is being rented by the TE Logis logistics company and the lease runs through 2027.

“Supply of distribution centers is constantly increasing, but there are a lot of opportunities since investment demand is still high,” said Kasa Korea CEO Yea Chang-whan in a statement.

In June, Kasa Korea sold a building in Gangnam, southern Seoul, that was traded on the app. It distributed the profit to investors, it said on Tuesday. Total return for the building, including dividends from rent and distribution after sale, was 14.76 percent over 18 months.

BY JIN MIN-JI [jin.minji@joongang.co.kr]