First Half Investments Are in the Real Estate World… Artworks Are Lukewarm

Lucent Block and Casa Real Estate Public Offerings Sold Out
Together Art and Yeolmae Company Artwork Subscriptions Fall Short
Hanwoo Sculpture Investment Market Also Opens… Public Offering in Progress
“Highly Stable Real Estate STO… Fastest Popularization”

This article has been translated into English through AI.

In the first half of this year, various piece investment public offerings were held in the piece investment market, ranging from real estate trust income securities to art and Hanwoo investment contract securities. Among these, the real estate piece investment industry was the most active. The market expects that real estate STO will be the fastest to take hold in Korea.

3/4 of Real Estate Segment Investments Sold Out

According to the token securities issuance (STO) industry on the 2nd, a total of 4 public offerings were conducted in the real estate segment investment market in the first half of this year, and 3 of them were sold out. Looking at the status of the public offering, there are △2 Lucent Blocks, △1 Casa, and △1 Fundble. Fundble eventually withdrew its public offering for the Bangbae-dong Jay Building in June after failing to achieve a 100% subscription rate.

Lucent Block, the operator of the real estate token securities platform ‘Soyou’, sold out its 8th real estate ‘Shindorim Pinpoint Tower 2’ worth about 2.1 billion won in February. Then, in May, it succeeded in achieving a 100% subscription rate in its 9th real estate ‘Seongsu Kolon Tower’ public offering worth about 1.8 billion won. In July, the 10th real estate, ‘Shindorim Pinpoint Tower 3’, worth approximately 1.4 billion won, is scheduled for public offering.

Casa succeeded in selling out the 8th real estate, ‘Grain Boundary Building’, worth approximately 2.1 billion won in May, surpassing the cumulative public offering total of 57.2 billion won. Following this, Casa held a beneficiary meeting for the 6th public offering, ‘TE Logistics Center’, and decided to sell it, achieving the industry’s first ‘triple sale’. Casa plans to hold the 9th public offering in August and conduct one additional sale within the second half of the year.

In June, Funble participated in the public offering for the 3rd real estate, Jay Building in Bangbae-dong, Seocho-gu, Seoul, but withdrew the public offering plan due to a shortfall in subscriptions. The public offering was for a new building with 1 basement floor and 4 floors above ground, worth approximately 2.9 billion won, but the subscription rate was only approximately 85%. As it was the largest public offering held in the first half of the year, it is evaluated that it was not easy to achieve a subscription rate of 100%. Currently, Funble is considering the possibility of re-subscribing to Jay Building and is reviewing the next public offering building.

Lukewarm art… Undersubscribed

The art sculpture investment market in the first half of the year is also showing signs of public offering, but the atmosphere is not good due to the market deterioration. Together Art, a subsidiary of art auction company K Auction, and Yeolmae Company, the operator of the art sculpture investment platform ‘Art & Guide’, held a public offering of investment contract securities in the first half of the year, but failed to achieve a 100% subscription rate.

According to Together Art’s securities issuance performance report, 35,563 shares of the 3rd art investment contract securities were processed as unsubscribed. Together Art entered the subscription for the 3rd art at the end of May. The underlying asset was George Condo’s 1996 work ‘Untitled’, called the 21st century Picasso, and a total of 102,800 shares were offered.

Yeolmae Company also failed to make a success of its public offering. According to the securities issuance performance report, about 40% (4,875 shares) of the total 12,300 shares issued for the No. 2 Art Investment Contract Securities were processed as unsubscribed. Yeolmae Company conducted a public offering for the No. 2 Art Investment Contract Securities in June. The underlying asset is the 300th work of Lee Woo-hwan’s 2007 “Dialogue.” Last December, the first domestic investment contract securities were a success, recording a subscription rate of about 650%, but the No. 2 investment contract securities recorded an undersubscription.