Exclusive
YBM Group purchases prime building near Apgujeong Station for 106.5 billion KRW

[비즈한국] YBM Group has purchased an office facility near Apgujeong Station in Sinsa-dong, Gangnam-gu, Seoul, for 106.5 billion KRW. The acquisition of this large-scale asset was carried out jointly by the holding company, YBM Holdings, and YBM Development, which manages the group's real estate assets. Given the proximity to the existing YBM Apgujeong Center and the expected demand from the Apgujeong reconstruction project, this move is interpreted as the group's strategy to expand its asset portfolio in the Apgujeong area.

According to the real estate industry and the property register, YBM Holdings (70% stake) and YBM Development purchased the office facility in Sinsa-dong, Gangnam-gu, Seoul, on the 31st of last month for 106.5 billion KRW. The building has 7 floors above ground (total floor area of 6,354㎡) and is located near Apgujeong Station. The purchase price per 3.3㎡ of land is approximately 150 million KRW. YBM Group completed the transfer of ownership just two months after signing the sales contract in January. Considering that a financial institution established a mortgage with a maximum bond amount of 70.8 billion KRW (usually 120% of the loan amount), the loan is estimated to be around 59 billion KRW.

YBM is a language education company that started in 1961 as Sisa English Publishers. Beginning with English workbooks, it expanded its business to language proficiency tests like TOEIC, English textbook publishing, online lectures, and academy franchises. After being reorganized into a holding company structure in 2012, YBM Holdings now oversees business units such as the publishing company YBM and the academy operator YBM Edu. YBM Development, which purchased the building along with the holding company, is an affiliate responsible for the group's real estate leasing and investment.

The financial scale of the group's holding company, YBM Holdings, is significant. According to the consolidated audit report, the total consolidated assets of YBM Holdings at the end of 2024 were 1.0565 trillion KRW, an 8% increase from the end of the previous year. Revenue for the same year also increased by 2% to 293.8 billion KRW. However, the consolidated operating profit turned into a loss of 2.2 billion KRW in 2024 from a profit of 15.7 billion KRW in 2023, and the consolidated net profit dropped by 89% from 12.2 billion KRW to 1.3 billion KRW. While the asset scale is substantial, the recent performance trend makes this large-scale real estate purchase in the Gangnam area a notable move.

The other purchasing entity, YBM Development, is the affiliate in charge of YBM Group's real estate assets. Its major rental properties include YBM Gangnam Center, YBM Apgujeong Center, Inhyeon Arcade, and Sinsung Shopping Tower. As of the end of 2024, its tangible assets, such as land and buildings, amounted to 79.8 billion KRW. In particular, the YBM Apgujeong Center on Apgujeong-ro is a core asset co-owned with the affiliate SK Industry. Being close to the newly purchased Sinsa-dong building, this is seen as part of the group's effort to expand its real estate footprint around Apgujeong Station.

The location, backed by the Apgujeong Apartment District, which is considered the most expensive reconstruction site in Korea, is also noteworthy. To the north of the property purchased by YBM Group, apartments like Apgujeong Hyundai, Hanyang, and Miseong are undergoing reconstruction, divided into 6 zones. Future population growth due to reconstruction is highly likely to increase demand for both education and commercial facilities. Given that YBM Group has secured additional assets near its existing Apgujeong base, it appears to be a preemptive response to the changes in the northern Gangnam commercial district linked to the Apgujeong reconstruction.

Bizhankook contacted YBM Holdings to inquire about the background and future utilization plans for this real estate purchase, but could not receive a response.