Shinsegae Property warns IGIS over unilateral Centerfield sale

Shinsegae Property CI

Shinsegae Property on Thursday issued a stern warning against IGIS Asset Management, voicing strong opposition to the asset manager’s push to sell Centerfield and signaling potential legal action if the effort continues.

In a statement, Shinsegae Property said IGIS Asset Management is aggressively pursuing the sale of Centerfield—the core asset of the IGIS No.210 private real estate investment company it manages—without sufficient justification, calling the move “highly inappropriate” from an investor-protection standpoint.

The company criticized IGIS for failing to prioritize investor interests, lacking reasonable grounds for a sudden sale attempt, and pressing ahead unilaterally without providing explanations investors could accept.

A Shinsegae Property official said the company has never considered selling Centerfield nor agreed to any such decision by the asset manager. If what it described as unilateral actions continue—following what it called prior conduct that undermined trust in the partnership—the company said it will pursue all available options, including legal measures, as an investor.

Shinsegae Property holds 48.4 percent of Centerfield through the Capstone APAC Private Investment Trust No.2, having invested a total of 554.8 billion won ($380 million), including equity, into the IGIS-managed vehicle. The broader Shinsegae Group’s stake stands at 49.7 percent, the company said.

Completed in June 2021 on the former Renaissance Hotel site along Teheran-ro in Gangnam, Centerfield comprises two towers of 35 and 36 stories. With a total floor area of 240,000 square meters and 890 parking spaces, it is among the largest office complexes in Seoul’s Gangnam business district.

Shinsegae Property added that the fair value of its Centerfield stake rose to 742.8 billion won at the end of 2024 from 708.5 billion won at the end of 2022.