Hyundai shares drop after record spend for new headquarters

<p>Hyundai is spending a record $10 billion for its new headquarters in Seoul.</p>

Hyundai Motor Group has bought the site of its new headquarters in Seoul's Gangnam district for a record $10 billion (£6.1 billion).

The large amount, which is triple the property’s assessed value, is causing concerns among investors as it exceeds Hyundai Motor’s entire 2013 earnings.

"This deal is going to take a huge chunk out of Hyundai's vault, and dipping their hands into a cash stash that could have otherwise been used for higher dividend payouts and R&D is going to aggravate many investors, especially foreigners," said Ko Tae-bong, auto analyst at HI Investment & Securities, quoted by Reuters.

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.

Hyundai Motor Co shares dropped 9.2 per cent, their biggest fall in three years, after the bid was announced.

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