The Hyundai Motor Group is preparing to pay a record US$10 billion (A$11.19 billion) for the site of its new headquarters in Seoul’s high-end Gangnam district, out-bidding Samsung Electronics and sparking investor concerns that it is wasting cash on a trophy property.
If it goes ahead, it would be the highest price by far for a single piece of land in Asia since the global financial crisis, according to CBRE Research, topping the US$3.6 billion paid last year by Hong Kong’s Sun Hung Kai Properties for a site in a commercial district in Shanghai.
Investors and analysts expressed alarm at the price that Hyundai was willing to pay for a site at a time when it could be pouring money into higher dividends or more factories. At the site, it plans to build an auto theme park and a hotel as well as new offices. Continue reading “Hyundai sees value in $10 billion land grab” »