Hyundai’s $11.2 Billion Property Buy Drives Investor Backlash

Hyundai’s investors are reportedly displeased over the carmaker’s decision to spend AU$11.2 billion on a ‘trophy property’, following a bidding war with fellow Korean company Samsung Electronics.

The prime real estate is located in Seoul’s Gangnam district; considered by Koreans to be an upmarket area in the capital city, south of the Han River.

Hyundai intends to use the purchase for its new global headquarters, but investors are more concerned with the record-breaking price.

Reuters reports that CBRE Research declared a AU$4 billion purchase made last year by a Hong Kong company for a property in Shanghai was the highest amount paid for an Asian property since the global financial crisis.

But Hyundai has now smashed that record, paying almost three times that amount for its new HQ which was reportedly triple the property’s appraisal value.

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