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Doosan Bobcat to Sell Doosan Technology Center for 187 Billion Won

[비즈한국] Doosan Bobcat241560, considered a "crown jewel" of the Doosan000150 Group, is selling the Doosan Technology Center—which it had purchased to provide liquidity to the group—for 187 billion won. Doosan Bobcat, a manufacturer of compact construction equipment, faced sluggish performance last year due to the global construction downturn, and it is reported that the company found a buyer while contemplating the sale of non-core assets.

According to industry sources, Doosan Bobcat’s U.S. subsidiary, Doosan Bobcat North America, signed a contract last January to sell the Doosan Technology Center building (total floor area of 32,988㎡) and the surrounding site (34,324㎡) located in Suji-gu, Yongin-si, Seoul, for 187 billion won. This price is approximately 75.8 billion won higher than the purchase price from about five years ago (totaling 111.2 billion won). The buyer is a Project Financing Vehicle (PFV) established with the goal of developing residential units in the area, and it is reported that the buyer is currently undergoing financing procedures to pay the remaining balance.

The Doosan Technology Center is an asset that Doosan Bobcat acquired from the group's holding company and affiliates. In April 2019, when a liquidity crisis emerged within the group due to massive losses at Doosan E&C011160, Doosan Bobcat North America acquired a 78% stake in the Doosan Technology Center from Doosan and Doosan Enerbility034020 (then Doosan Heavy Industries & Construction) for 85.6 billion won. In December of the following year, it purchased the remaining stake held by Doosan Infracore for 25.6 billion won. After selling the stake, Doosan entered into a five-year master lease agreement for the Doosan Technology Center, using it for the Doosan Electronics R&D Center, the headquarters of Doosan Logistics Solutions, and the Doosan Mobility Innovation Suji office.

Doosan Bobcat is Doosan Group’s heavy equipment company. Established in April 2014, it produces and sells compact equipment for construction, agriculture, and landscaping—such as mini-excavators, compact tractors, and light compaction equipment—as well as industrial vehicles and portable power equipment. As a foreign-owned holding company, it has subsidiaries not only in North America (Doosan Bobcat North America) but also in Europe, Africa, Asia, and Latin America. The largest shareholder of Doosan Bobcat is Doosan Enerbility, which holds a 46% stake. The largest shareholder of Doosan Enerbility is the holding company Doosan, which holds a 30% stake, making Doosan Bobcat a grandchild company of Doosan.

Doosan Bobcat, considered a crown jewel of Doosan Group, could not avoid a slump last year due to the construction industry downturn. Its 2024 consolidated revenue was 8.5512 trillion won, and its operating profit was 871.4 billion won, down 12% and 37% respectively compared to the previous year. By product, sales of compact equipment fell by 15%, industrial vehicles by 22%, and portable power equipment by 16%. Regional sales dropped by 17% in North America, 21% in Europe/Middle East/Africa, and 5% in Asia/Latin America/Oceania due to declining overall market demand. Doosan Bobcat projected its operating profit for this year at 792 billion won, which is 9% lower than the previous year.

A Doosan Bobcat official remained cautious, stating, "Because we are not a real estate company, we decided to sell the asset as part of streamlining our non-core assets."