Koh Brothers Group receives strong demand for maiden entry into South Korea

KOH Brothers Group's first project in South Korea has been 96 per cent sold within three months of its launch, it said in its Singapore Exchange (SGX) filing on Thursday.

Additionally, 75 per cent of all the units in the mixed-use development were sold in the first seven days of its launch in March 2018, reflecting what it called its "strategic and timely expansion into South Korean real estate market".

Located in the Gangnam district in Seoul, the freehold Nonhyeon I'PARK comprises 99 apartments, 194 "OfficeTel" SoHo units and 53 retail units. The development is located near the core business districts of COEX and Teheran-ro.

The project, which spans a land area of 4,611 sq m, is 45 per cent owned by the mainboard-listed property and construction player in a joint venture with local developer Daeryun D & I Co.

Redevelopment began in the second quarter of this year, and is expected to be completed in the fourth quarter of 2020.

The project is expected to contribute positively to Koh Brothers' financial performance from the financial year ending Dec 31.

"Considering the current market upcycle and favourable response received so far, we are confident to sell the remaining 14 units by Q3 2018, and will continue to push sales until we are sold out," said Francis Koh, managing director and group chief executive of Koh Brothers. "We see promising prospects for us as lifestyle-themed developers in South Korea, and are excited to explore further opportunities in this market where we can continue to redefine living for consumers, thereby maximising the yield of our properties."

Koh Brothers closed unchanged at S$0.285 on Thursday before the announcement was made.