Lotte Asset Development partners with Cushman & Wakefield Korea to expand leasing, investment advisory services

Lotte Asset Development has teamed up with Cushman & Wakefield Korea as it looks to expand beyond real estate investment, development and building operations into leasing and investment advisory services.

Lotte Asset Development announced Tuesday that it signed an MOU with Cushman & Wakefield Korea for real estate service cooperation. The two companies will collaborate across a range of areas, including property management, leasing advisory, real estate consulting, and acquisition and disposal advisory.

Property management, or PM, refers to services that oversee the day-to-day operations of a building on behalf of its owner — covering lease management, facility management and maintenance — with the goal of maximizing asset value. Lotte Asset Development has a track record in PM for mixed-use complexes combining retail, office, hotel, cinema and concert hall functions. As the owner and property manager of Lotte World Tower and Mall, the company also has expertise in managing and operating supertall mixed-use buildings. It also operates and manages Lotte Center Hanoi in Vietnam.

Cushman & Wakefield Korea brings global networks and leasing and investment advisory capabilities to the partnership.

The agreement comes as Lotte Asset Development broadens its scope to include property management of assets outside the Lotte Group. The company currently handles PM for prime office assets in the Greater Seoul area, including Arc Place in the Gangnam business district and Pangyo H Square in the Bundang business district.

"We will provide customers with more competitive services and contribute to the development of the domestic property management market," said Jang Jae-hoon, CEO of Lotte Asset Development. Hwang Jeom-sang, CEO of Cushman & Wakefield Korea, said the agreement was "a meaningful starting point for delivering greater value to customers by combining the expertise and market experience both companies bring."

Meanwhile, Lotte Asset Development acquired the former Lotte Chilsung site in Yangpyeong-dong, Seoul, in March and is working through the permitting process for a new real estate development project — its first since Lotte World Tower was completed a decade ago.