Lotte Property & Development Co., the real estate development and leasing arm of South Korea’s Lotte Group, is expected to kick off the sale of two logistics centers in Gyeonggi Province, with an aim to shore up liquidity amid concerns over potential liquidity crunch.

According to multiple sources from the investment banking industry on Wednesday, Lotte Property & Development has recently sent out requests for proposals (RFPs) to consulting and accounting firms to appoint a sales advisor for its logistics centers in Anseong and Icheon in Gyeonggi Province.

The move is interpreted as part of an effort to secure liquidity amid active logistics center transactions led by foreign investors.

The company aims to raise about 200 billion won ($142 million) through the sale.

The sale is part of a broader Lotte Group strategy to restructure operations and divest non-core businesses and assets.

Lotte Property & Development began construction of the Anseong CDC Logistics Center in 2023. The facility is a combined cold and dry storage logistics center with one basement level and four above-ground floors, totaling 40,483 square meters of gross floor area.

It is considered a prime asset due to its excellent location.

The Icheon Logistics Center has a gross floor area of 27,909 square meters and is also a combined cold and dry storage facility.

Lotte Property & Development plans to select a sales advisor within the first half of this year and designate a preferred bidder in the second half.

Earlier, Lotte Property & Development identified logistics center investment and leasing as a new business area after stabilizing its core rental businesses at Lotte World Tower and Lotte World Mall.

The company sought to develop high-quality logistics centers in Gyeonggi Province to create synergy with Lotte’s core distribution businesses and diversify its portfolio.

However, given Lotte Group’s current focus on securing liquidity and the active domestic logistics market driven by foreign investment firms, the decision was made to proceed with the sale.

According to CBRE Korea, a global real estate services firm, logistics center transactions in Korea totaled 1.4 trillion won in the first quarter of 2025, with foreign capital accounting for about 64 percent of the volume.

Lotte Group aims to use this logistics center sale to accelerate improvements to its financial structure.

Last year, it sold Lotte Rental to Hong Kong-based private equity firm Affinity Equity Partners. This year, it divested Lotte Wellfood’s Jeungpyeong Plant, Lotte Chemical’s Pakistan subsidiary, and Korea Seven’s ATM business unit.

Lotte Engineering & Construction Co., another unlisted Lotte affiliate, is working to improve financial soundness by optimizing assets, including its headquarters building in Jamwon-dong, southern Seoul, and other regional logistics warehouses.

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