Table of Contents
- Sale of Dongnae Lotte site and community response
- Guaranteed operation until 2034, immediate closure possibility is low
- Possibility of mixed-use development, practicality is limited
- After 2035, development prospects open depending on real estate market
- Conclusion: Maintained operations for now, various possibilities open in the long term
- Frequently Asked Questions (FAQ)
Sale of Dongnae Lotte site and community response
The site of Lotte Department Store Dongnae in Busan has gained considerable attention from local residents after being sold for 399 billion won.
As information about the new owner remains undisclosed, there is growing curiosity, with opinions arising in online communities wondering if “there is a possibility for a high-rise mixed-use development” and concerns over “the mall possibly closing down.” Since its opening in 1993, the store has played a central role in the Dongnae commercial area, increasing worries among the local residents.
After Lotte Shopping sold the site to private equity firm Capstone Asset Management in 2014 for asset liquidity, Lotte Department Store continued operations by leasing the property. This transaction was completed on the 5th of last month, with Capstone selling it to a third party.
Development information around Myeongryun-dong in Dongnae-gu
Guaranteed operation until 2034, immediate closure possibility is low
As a new owner emerges, anxiety is spreading, but it has been confirmed that the possibility of Lotte Department Store Dongnae closing is low for now. According to the existing lease agreement, the store can continue operations until December 2034, and Lotte has recently been executing various facility improvements, including an MD restructuring and sports center renovation.
According to Lotte Department Store, “The sale of the site is a decision by the owner, Capstone, and we will continue business normally during the contract period.” They maintain there is no consideration for closure, indicating a willingness for mid-to-long term operation. This can be interpreted as an effort to provide stability to customers.
Possibility of mixed-use development, practicality is limited
Currently, there is an opinion that the Dongnae site may be developed into high-rise mixed-use apartments in the future. Due to its location in the heart of downtown and being a large site, there is substantial development potential.
However, the real estate industry holds a cautious view on whether actual development will occur even after Lotte's lease period ends in 2035. The main reasons are as follows:
First, there is the risk of local resident backlash. In the past, several developers have withdrawn projects citing resident opposition. Second, issues around connectivity with the commercial areas of Dongnae Station and Myeongryun Station are also important. Due to the regional significance of the retail facility, making a development decision is challenging. Lastly, the uncertainty of market conditions cannot be overlooked. Although the Dongnae apartment market has shown signs of recovery recently, there remains a high risk associated with large-scale redevelopment projects.
An industry insider emphasizes, “Due to the central location in Dongnae, where various convenience facilities are concentrated, a significant social consensus is needed to eliminate the existing department store function and convert it into large-scale residential facilities.” These various factors are likely to necessitate more discussions on the development direction of the Dongnae site in the future.
After 2035, development prospects open depending on real estate market
If Lotte Department Store ceases operations in 2035, the potential for utilizing the site will significantly increase. The Dongnae Lotte site is located in a key commercial zone of the downtown area, covering a large area of 10,000 pyeong, and is very convenient to access via subway.
Due to these characteristics, when the real estate market is revitalized, various development forms such as mixed-use, complex malls, and officetels are likely to be reconsidered. Thus, the future value of this area is very promising.
Over the next decade, if the population and commercial area changes in Busan, along with the reorganization of urban planning in Dongnae-gu and the real estate market cycle aligning, structural changes in the Dongnae core commercial area may emerge. This situation may also lead to large-scale development projects. It is suggested that this sale reflects the inherent development value.
Conclusion: Maintained operations for now, various possibilities open in the long term
The sale of the Dongnae Lotte Department Store site does not have a significant relationship with immediate closure or development. Operations are guaranteed until 2034, and Lotte continues to improve facilities.
However, after 2035, it is evaluated as a site with high potential for development discussions to become active due to changes in the real estate market. This can be interpreted as an important signal for the future changes in the Dongnae commercial area.
Especially, the prospects for high-rise mixed-use or complex development may vary based on market conditions, resident opinions, and policy environment. These factors are expected to emerge as significant issues that will influence the future of Dongnae's central area in the long term.
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Frequently Asked Questions (FAQ)
Q. Has the Dongnae Lotte Department Store site been sold recently?
The Dongnae Lotte Department Store site has recently been sold to a third party for approximately 399 billion won.
The Dongnae Lotte Department Store site in Busan has been sold for 399 billion won, bringing in a new owner. After being sold to private equity firm Capstone Asset Management in 2014, it was operated as a rental, but recently Capstone sold it to a third party, changing the ownership. However, specific information about the new owner has not yet been disclosed.
Q. Until when is the operation of Lotte Department Store Dongnae guaranteed?
Operations are guaranteed until December 2034 according to the lease agreement.
Lotte Department Store Dongnae is expected to operate normally until December 2034 according to the existing lease agreement. Lotte has also been making efforts to improve facilities such as store MD restructuring and sports center renovations, indicating low immediate closure possibilities without any considerations for closure.
Q. Is it possible to develop high-rise mixed-use facilities on the Dongnae Lotte Department Store site?
There is a possibility for high-rise mixed-use development, but practical limitations and resident backlash exist.
The Dongnae site is a core downtown location and there are discussions on its potential for large-scale development including high-rise mixed-use apartments. Nevertheless, resident opposition, issues concerning connectivity with commercial areas, and market uncertainties pose restrictions on this development. The industry believes that development decisions should be made carefully based on social consensus and market conditions.
Q. What is the possibility of development for this site after 2035?
Various development possibilities are open depending on the real estate market situation after 2035.
After the lease period of Lotte Department Store ends in 2035, discussions regarding the utilization of the site are expected to become active. Given its location in a major commercial area and its convenient access, various development forms such as mixed-use, complex malls, and officetels may be examined. However, this is subject to variables dependent on the real estate market conditions, resident opinions, and policy changes.
Q. What impact will this site sale have on the Dongnae commercial area?
Currently, with operations maintained, the impact on the commercial area is minimal, but there is potential for change in the long term.
Since the Dongnae Department Store site is guaranteed to operate until 2034, there will be no significant shock to the commercial area for now. However, over the long term, changes in population, urban planning, and the real estate market may cause structural shifts in the Dongnae commercial area. This sale is interpreted as reflecting potential development value and serves as an important signal for future changes in the commercial area.
