STS Development Consortium Selected as Preferred Bidder for Pi City Acquisition

(Seoul = Yonhap News) — Major Korean retailers Shinsegae, Lotte, and CJ are set to coexist and compete under one roof at Pi City in Yangjae-dong, Seoul. The STS Development Consortium announced on the 4th that it had been selected as the preferred bidder in the sole bid for the acquisition of Pi City in Yangjae-dong. The consortium includes Shinsegae Department Store, Lotte Mart, CJ Group, and Mirae Asset. Five companies submitted letters of intent (LOIs) in the public bidding process, which closed the previous day. However, only STS Development was recognized as a valid bidder. Court approval for the acquisition of Pi City was expected to be issued on the 4th. The acquisition price is 400 billion won, and the deal must receive approval from the creditors before it can be finalized. The STS Development Consortium said it received a favorable evaluation for its stable facility operation plan, the quality of its prospective tenants, and its strong financial stability. The consortium plans to transform Pi City into a 760,000-square-meter (approximately 7.6 million square feet) mixed-use complex incorporating offices, research and development facilities, retail, and logistics. It aims to establish the development as a landmark serving southern Seoul, the Bundang and Gwacheon areas, and ultimately the wider Seoul metropolitan region. Major retailers including Shinsegae, Lotte, and CJ will participate extensively in the shopping mall, which will serve as the complex’s centerpiece. In addition to Shinsegae Department Store, Lotte Mart, CGV, and CJ Foodville, global SPA brands such as Zara and Uniqlo have either completed lease agreements or committed to opening stores there. In particular, the fact that Shinsegae and Lotte, longtime rivals in the retail industry, will be operating under the same roof for the first time has attracted considerable attention. An STS Development Consortium official said, “We will establish it as Korea’s premier destination shopping mall by providing a wide range of facilities, including a luxury goods section, outlet stores, an electronics exhibition area, restaurants, and workshops for master artisans designated as Important Intangible Cultural Heritage.”