Mastern Investment puts 13 E-Mart outlets up for sale in package deal

The Seoul-based equity firm is exiting its 2019 investment in E-Mart stores with the sale, which is likely to fetch $866 million

E-Mart is the supermarket brand of Shinsegae Group
E-Mart is the supermarket brand of Shinsegae Group
Gyeong-Jin Min 2
2025-08-14 17:42:32 min@hankyung.com
Alternative investments

Mastern Investment Management Co., a Seoul-based real estate investment firm, is putting 13 E-Mart Inc. outlets it acquired from the South Korean retail giant Shinsegae Inc.’s unit in 2019 – a move that is expected to be one of the country’s largest retail property transactions this year.

According to people familiar with the matter, Mastern Investment on Thursday sent out requests for proposals (RFPs) to property consulting firms to act as advisers on the planned portfolio sale.

The assets up for sale include E-Mart’s Cheonho branch in Seoul and 12 other stores, along with their underlying land, mostly located in prime areas in the Seoul metropolitan region.

Mastern Investment Management is a Seoul-based investment firm (Screenshot captured from its website)
Mastern Investment Management is a Seoul-based investment firm (Screenshot captured from its website)

Sources estimate the 13-store E-Mart portfolio could fetch around 1.2 trillion won ($866 million), offering prospective buyers both stable income and long-term value-add opportunities.

Mastern plans to appoint a sales adviser shortly and launch a bidding process later this year.

NEW OWNER LIKELY TO INHERIT STABLE RENTAL INCOME STREAM

The disposal comes as the seven-year real estate fund Mastern set up to finance the acquisition of 13 stores is approaching maturity next year.

Mastern Investment Management is a Seoul-based investment firm (Screenshot captured from its website)
Mastern Investment Management is a Seoul-based investment firm (Screenshot captured from its website)

The asset manager bought the properties from E-Mart for 952.4 billion won in a sale-and-leaseback deal, with the total transaction cost, including ancillary expenses, slightly exceeding 1 trillion won.

Under the terms, E-Mart agreed to lease the stores back for 10 years, with an option to extend for another decade. Three years remain on the initial lease period, meaning the new owner would inherit a stable rental income stream from E-Mart, Korea’s largest hypermarket chain.

E-MART CONSOLIDATING LEAD OVER STRUGGLING HOMEPLUS

Although the rise of e-commerce has dented investor appetite for large-format retail properties, Mastern is confident the portfolio’s location, scale and tenant quality will attract strong interest.

Homeplus' logo seen outside an outet in central Seoul
Homeplus' logo seen outside an outet in central Seoul

Eleven of the stores, including outlets in Geomdan, Dongincheon, Sanbon, Susaek, Suwon, Yangju, Ilsan, Jinjeop, Cheonho, Pyeongchon and Pocheon, are in the densely populated capital region, while two other branches – one in Gumi and the other in Daegu – serve robust catchment areas in the provinces, according to industry officials.

The properties, many with sizeable land parcels, are viewed as having redevelopment or repositioning potential.

Analysts also note that E-Mart has been consolidating its dominance in the hypermarket sector as rival Homeplus Co. is struggling through a court-led restructuring.

Write to Gyeong-Jin Min at min@hankyung.com

In-Soo Nam edited this article.
#Korean investors #Mergers & Acquisitions #Private equity #Mastern Investment Management #E-commerce #Food & Beverage #Retail #Shinsegae #E-Mart #E-Mart24 #hypermarket #Homeplus #MBK Partners #RFP

Red flags raised even before Homeplus crisis: Sales fall, credit ratings cut

Red flags raised even before Homeplus crisis: Sales fall, credit ratings cut

A Homeplus outlet in Seoul (File photo by Yonhap) Even before South Korea’s second-largest hypermarket chain Homeplus Co. was put under court receivership due to its worsening financial woes, the warning signs were there.Sales at the retail giant stumbled in the run-up to Homeplus’

MBK-invested Homeplus looks for new owner as M&A emerges as option

MBK-invested Homeplus looks for new owner as M&A emerges as option

Homeplus' logo seen outside an outet in central Seoul South Korea’s leading hypermarket chain Homeplus Co. is once again up for sale, a decade after private equity firm MBK Partners Ltd. took it private in a landmark leveraged buyout.Currently under court-supervised restructuring, Homeplu

MBK-owned Homeplus files for corporate revamp with Seoul court

MBK-owned Homeplus files for corporate revamp with Seoul court

Homeplus' logo seen outside an outet in central Seoul South Korea’s leading hypermarket operator Homeplus Co., wholly owned by North Asia-focused private equity firm MBK Partners, on Tuesday filed for corporate rehabilitation with a Seoul court amid growing market concerns about its finan

Shinsegae Group splits E-Mart, department store with executive reshuffles

Shinsegae Group splits E-Mart, department store with executive reshuffles

South Korea’s retail giant Shinsegae Group on Wednesday carried out one of its most drastic executive reshuffles, officially splitting the group’s two business pillars – E-Mart Inc. and Shinsegae Department Store – into two different subgroups.The business division is s

E-Mart’s No Brand success story: A Korean snack chain goes global

E-Mart’s No Brand success story: A Korean snack chain goes global

No Brand Burger, a fast food hamburger chain owned by E-Mart When South Korean convenience store operator E-Mart Inc. launched its low-budget house label No Brand in 2015, few thought it would last long.Under its motto, “ultra-cheap prices beyond common sense,” No Brand has since un

Mastern buys Pangyo office landmarks for $834 mn

Mastern buys Pangyo office landmarks for $834 mn

Alpharium Tower in Pangyo, just south of Seoul Mastern Investment Management Co., a Seoul-based real estate investment firm, has acquired Alpharium Tower I and II in Pangyo from ARA Asset Management Korea for around 1 trillion won ($833.5 million). The sale price was 9.1 million won ($7,584)

(* comment hide *}