Rsquare provides a wide range of services, including real estate investment advisory, backed by a comprehensive domestic and international database. With highly trusted data and consulting capabilities, Rsquare offers investment advisory services for small, mid-sized, and large trophy assets.
Recently, the company welcomed seasoned professional Lee Ho-Jun as Vice President, marking the start of what they call a "Quantum Leap." Lee, a veteran in commercial real estate with experience at institutions like Woori Bank and Savills, shared his insights on why he joined Rsquare and his vision for leading the company through challenging times.
Lee Ho-Jun as Vice President
R: What motivated you to join Rsquare? What potential do you see in the company, and how do you plan to leverage your skills and experience to create synergy?
Lee: The real estate market has undergone massive changes, especially after the pandemic. Rising interest rates and uncertainty in global financial markets have shaken the Korean real estate sector. The liquidity that once flowed freely has significantly dried up, particularly impacting asset management companies that handle other people’s money. With less liquidity, new investments became harder to make.
During this time, I met with Park Eung-Han, the CEO of Rsquare Investment Advisory, and I realized that the investment advisory business could offer a solution in today’s difficult financial market. As asset management firms face challenges with maturing funds, properties continue to come onto the market, and connecting them to the right buyers is where advisory comes in.
Rsquare has the largest commercial real estate database in Korea. Combining that data with investment advisory creates huge potential. Unlike traditional brokers, modern investment advisors analyze properties and create value-add strategies based on data, while also connecting strategic investors.
Rsquare's data doesn’t just cover office buildings but also links tenants, landlords, and investors. This synergy can be especially powerful for asset management companies.
With my broad experience in commercial real estate, including market research, asset management, and investment advisory, I believe I can play a key role in bridging the gap between investors, advisors, real estate, and finance.
R: Could you highlight some of your major achievements in your previous roles?
Lee: I’ve been fortunate to work on several "first-ever" projects. At BHP Korea (now Savills), I helped build the first office stock database in Korea and created market reports for foreign investors. This led to GIC (Singapore’s sovereign wealth fund) making their first investment in Korea. I also introduced many foreign investors, like GRA and Rodamco, to the Korean office market.
In 2004, when Korea’s Asset Management Act was established, I worked on the country's first real estate fund. We completed several groundbreaking projects, including the acquisition of the Hwajin Cosmetics building in Samseong-dong, using innovative financial structures.
After joining Woori Bank, I experienced difficulties due to the Lehman incident. A field of opportunity has also opened up. Many asset management companies were established at this time. PS Asset Management (now Aegis Asset Management) was created in 2010. In 2011, an investment proposal came to Woori Bank. At the time, there were not many cases of capital investment by management companies, but the equity investment was successful thanks to the persuasion of the management team and the bank's determination. Since then, with continued growth, the No. 1 management company in Korea has been created. A short but impressive conversation with founder Daeyong Kim still gave me challenge and hope.
After my first job as an investment advisor, the project I ordered was Hyundai Capital Building 1 in Yeouido. There were many difficulties as it was my first deal. Due to the nature of selling our own building, various decisions were needed. In particular, the understanding of securitization was different. A process of persuading this was necessary, and a sales structure that could be accepted in the market was created. Based on this, many investors participated and achieved the highest price for the Seoyeoido office building (at the time). Due to the success of the deal, the company received good reviews in the market.
R: What’s the biggest issue currently facing Korea’s commercial real estate market?
Lee: It is an interest rate inversion between the market interest rate and the cap rate. This is the first phenomenon experienced in 20 years since the real estate indirect investment market was opened. In the past, the cap rate always showed a higher spread of around 1% than the market interest rate. So it was a market where leverage could be enjoyed. However, we are now at a unique inflection point where we cannot expect the leverage effect. Ultimately, completing a project requires various financial structures, investor decision-making, and clear upward expectations for the future.
I think our role and expectations will grow. Investors review real estate investment from a long-term investment perspective rather than a simple rate of return perspective. Accordingly, the commercial market will be reorganized from a market centered on financial investors (FIs, pension funds, mutual aid associations, etc.) to a market centered on strategic investors (SI) or end-users. For the time being, it depends on how to secure and persuade SI investors. This is an important issue in completing the project. R Square has built a wide network with SI and ‘end-users’ through 300,000 office databases and corporate marketing. Based on this, we can present various solutions to the seller.
R: Can you explain the role of your division and how Rsquare stands out compared to competitors?
Lee: We are brokers specializing in commercial real estate, which has become a highly specialized field as the market has grown to hundreds of trillions of won. Developing properties, structuring deals, and creating sale strategies require comprehensive consulting. With my background in both asset management and investment, I’m well-positioned to help buyers and sellers navigate these complexities.
Rsquare has a unique strength with its database of 300,000 commercial properties. This includes not just building information, but also details on tenants and investors, allowing us to track their movements and trends. Our ability to analyze the market, provide forecasts, and connect with a wide network of investors means we can go beyond institutional investors and reach corporate and individual investors as well.
Rsquare originally focused on leasing and interior design, but now we’re expanding into investment advisory, aiming to become a full-service real estate platform. Our advisory services will go beyond brokering deals; we’ll uncover potential property value, collaborate with our interior design division on value-add plans, and offer leasing, financial, and advisory services that enable real estate liquidity.
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Rsquare provides a wide range of services, including real estate investment advisory, backed by a comprehensive domestic and international database. With highly trusted data and consulting capabilities, Rsquare offers investment advisory services for small, mid-sized, and large trophy assets.
Recently, the company welcomed seasoned professional Lee Ho-Jun as Vice President, marking the start of what they call a "Quantum Leap." Lee, a veteran in commercial real estate with experience at institutions like Woori Bank and Savills, shared his insights on why he joined Rsquare and his vision for leading the company through challenging times.
Lee Ho-Jun as Vice President
R: What motivated you to join Rsquare? What potential do you see in the company, and how do you plan to leverage your skills and experience to create synergy?
Lee: The real estate market has undergone massive changes, especially after the pandemic. Rising interest rates and uncertainty in global financial markets have shaken the Korean real estate sector. The liquidity that once flowed freely has significantly dried up, particularly impacting asset management companies that handle other people’s money. With less liquidity, new investments became harder to make.
During this time, I met with Park Eung-Han, the CEO of Rsquare Investment Advisory, and I realized that the investment advisory business could offer a solution in today’s difficult financial market. As asset management firms face challenges with maturing funds, properties continue to come onto the market, and connecting them to the right buyers is where advisory comes in.
Rsquare has the largest commercial real estate database in Korea. Combining that data with investment advisory creates huge potential. Unlike traditional brokers, modern investment advisors analyze properties and create value-add strategies based on data, while also connecting strategic investors.
Rsquare's data doesn’t just cover office buildings but also links tenants, landlords, and investors. This synergy can be especially powerful for asset management companies.
With my broad experience in commercial real estate, including market research, asset management, and investment advisory, I believe I can play a key role in bridging the gap between investors, advisors, real estate, and finance.
R: Could you highlight some of your major achievements in your previous roles?
Lee: I’ve been fortunate to work on several "first-ever" projects. At BHP Korea (now Savills), I helped build the first office stock database in Korea and created market reports for foreign investors. This led to GIC (Singapore’s sovereign wealth fund) making their first investment in Korea. I also introduced many foreign investors, like GRA and Rodamco, to the Korean office market.
In 2004, when Korea’s Asset Management Act was established, I worked on the country's first real estate fund. We completed several groundbreaking projects, including the acquisition of the Hwajin Cosmetics building in Samseong-dong, using innovative financial structures.
After joining Woori Bank, I experienced difficulties due to the Lehman incident. A field of opportunity has also opened up. Many asset management companies were established at this time. PS Asset Management (now Aegis Asset Management) was created in 2010. In 2011, an investment proposal came to Woori Bank. At the time, there were not many cases of capital investment by management companies, but the equity investment was successful thanks to the persuasion of the management team and the bank's determination. Since then, with continued growth, the No. 1 management company in Korea has been created. A short but impressive conversation with founder Daeyong Kim still gave me challenge and hope.
After my first job as an investment advisor, the project I ordered was Hyundai Capital Building 1 in Yeouido. There were many difficulties as it was my first deal. Due to the nature of selling our own building, various decisions were needed. In particular, the understanding of securitization was different. A process of persuading this was necessary, and a sales structure that could be accepted in the market was created. Based on this, many investors participated and achieved the highest price for the Seoyeoido office building (at the time). Due to the success of the deal, the company received good reviews in the market.
R: What’s the biggest issue currently facing Korea’s commercial real estate market?
Lee: It is an interest rate inversion between the market interest rate and the cap rate. This is the first phenomenon experienced in 20 years since the real estate indirect investment market was opened. In the past, the cap rate always showed a higher spread of around 1% than the market interest rate. So it was a market where leverage could be enjoyed. However, we are now at a unique inflection point where we cannot expect the leverage effect. Ultimately, completing a project requires various financial structures, investor decision-making, and clear upward expectations for the future.
I think our role and expectations will grow. Investors review real estate investment from a long-term investment perspective rather than a simple rate of return perspective. Accordingly, the commercial market will be reorganized from a market centered on financial investors (FIs, pension funds, mutual aid associations, etc.) to a market centered on strategic investors (SI) or end-users. For the time being, it depends on how to secure and persuade SI investors. This is an important issue in completing the project. R Square has built a wide network with SI and ‘end-users’ through 300,000 office databases and corporate marketing. Based on this, we can present various solutions to the seller.
R: Can you explain the role of your division and how Rsquare stands out compared to competitors?
Lee: We are brokers specializing in commercial real estate, which has become a highly specialized field as the market has grown to hundreds of trillions of won. Developing properties, structuring deals, and creating sale strategies require comprehensive consulting. With my background in both asset management and investment, I’m well-positioned to help buyers and sellers navigate these complexities.
Rsquare has a unique strength with its database of 300,000 commercial properties. This includes not just building information, but also details on tenants and investors, allowing us to track their movements and trends. Our ability to analyze the market, provide forecasts, and connect with a wide network of investors means we can go beyond institutional investors and reach corporate and individual investors as well.
Rsquare originally focused on leasing and interior design, but now we’re expanding into investment advisory, aiming to become a full-service real estate platform. Our advisory services will go beyond brokering deals; we’ll uncover potential property value, collaborate with our interior design division on value-add plans, and offer leasing, financial, and advisory services that enable real estate liquidity.