In the commercial real estate consulting and development market dominated by foreign companies, Shin..

In the commercial real estate consulting and development market dominated by foreign companies, Shinyoung Asset, a native in Korea, is speeding up its business expansion with the “one-stop value chain.”

The plan is to diversify the portfolio to distribution centers and data centers (IDC), away from the existing office-oriented advice, while expanding the customer group to general corporations, local governments, and small and medium-sized asset owners.

In an interview with Maekyung AX on the 23rd, Lee Yoon-young, head of Shinyoung Asset’s investment advisory division, said, “Many people misunderstand it as a financial company after hearing only the name,” adding, “Shinyoung Asset is basically a consulting firm specializing in commercial real estate that operates around advisory services such as real estate purchase, sale, lease, and consulting.”

He continued, “Although the structure is functionally similar to Cushman & Wakefield, JLL, and CBRE, Shinyoung Asset does not have its own Property Management (PM) organization.”In addition, “PM functions are handled by its affiliate Shinyoung SLP, providing the same level of comprehensive services at the group level,” he added.

Shinyoung Asset is focusing its capabilities on combining development and asset management functions through a recent reorganization.

“What we are pursuing is a process that allows us to do development and asset management work at once,” said Lee Yoon-young, managing director. “We describe it as a ‘one-stop value chain.’

Shinyoung leads the development, Shinyoung Construction is in charge of construction, Asset is in charge of consulting and leasing, and SLP is in charge of PM and continues until the last stage of sale, he said. “It is a service that can provide all related processes from 1 to 10 by affiliates.”

It also introduced a case of joint participation in blind funds in collaboration with external asset management companies. At that time, Shinyoung was in charge of development PM as a strategic investor, and Shinyoung Asset was in charge of commercializing assets and exciting. “It is an ideal structure in which development and asset management take place within one fund,” he said.

New Consulting Organization…”The starting point of the service”

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Shinyoung Asset has recently strengthened its consulting function and is changing its business structure.

Managing director Lee said, “Consulting seems to be the beginning of all services,” adding, “It was an opportunity to expand to general corporations and local governments, away from asset management companies (AMC) or institutional-oriented customers.”

In particular, general corporations also have a lot of concerns about how to efficiently hold or sell their real estate assets, and local governments also said that demand for consulting is increasing due to various concerns such as revitalizing old city centers.

Shinyoung Asset sees medium-sized assets as a new opportunity rather than large prime offices. Managing director Lee said, “In the midst of polarization, medium-sized assets have a lot of concerns. It is important to convert them into decent assets, he said. “We want to play a role in increasing the value of assets by providing value-up measures, such as changing tenants or proposing remodeling.”

The actual approach is also specific. “We filter and access buildings with old semi-construction models and buildings with floor area ratios with data,” he said. “We inform the possibility of development that the building owner does not know and suggest solutions together.”

The portfolio strategy is also changing. Director Lee said, “In the past, it was mainly for offices, but in the future, we are going to take about 50% of offices, 25% of logistics, and 25% of data centers.”

In particular, IDC emphasized, “The parent company has developed and sold IDC directly in Ansan, so it has initial review and business promotion know-how,” adding, “It is possible to provide more in-depth advice based on experience.”

Regarding the reason for IDC’s expansion, he explained, “I think there is a great degree of certainty because I’ve tried it.”

Market Diagnostics “Solution is More Important Than Sector”

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They took a cautious stance on the future market outlook. Managing director Lee said, “Now, ‘assets with solutions’ are more important than taking pictures of specific sectors,” adding, “Office, logistics, and IDC should all have a clear user and profit structure.”

Regarding the office market, he said, “In the past, it was recognized that it was unconditionally good, but now we have to approach it selectively,” adding, “It is not easy to trade and lease even for the Pangyo people.”

IDC also evaluated that “power, water, and user acquisition are key conditions,” adding, “It is a market where opportunities and risks coexist.”

Shinyoung Asset plans to strengthen market communication in the future as well. “It has been too closed so far,” Lee said. “We will actively communicate with the market through reports and seminars.” “We will create an insight-oriented report that explains why such a phenomenon occurred and what will happen in the future, not just delivering numbers,” he stressed.

Finally, he stressed, “It is important that the synergy of affiliates is not only internal, but also delivered as value to external customers,” adding, “The goal is to show that they are sufficiently competitive advisors independently.”