Kumho Asiana Group will sell its headquarters building in Gwanghwamun, downtown Seoul, to Germany’s Deutsche Asset Management at around 400 billion won ($375 million) to aid cash flow of Asiana Airlines Inc..

Kumho Asiana Group announced Wednesday that it signed a memorandum of understanding to sell the building with Deutsche, and plan to hammer out detailed conditions for the deal with an aim to complete the sale within this month.

The 29-story building with eight underground floors commanding an area of 60,695 square meters is run by Kumho Asiana Main Tower Co., a special purpose company in which Asiana Airlines holds an 80 percent stake. The sale price would reach above 400 billion won given the book price of 180 billion won plus market value. The building is used by Kumho Industrial, Kumho Resort, Air Seoul, Kumho Tire and some departments of Asiana Airlines.

The proceeds would be used to pay off debts of Asiana Airlines that has been suffering from financial struggles due to the addition of new aircrafts including A380 and A350 and heated competition with budget carriers, according to industry watchers. In November last year, local credit rating agency Korea Investors Service downgraded credit rating of the nation’s second biggest full-service carrier to BBB- from BBB.

Shares of Asiana Airlines finished Thursday down 0.21 percent to 4,705 won.

By Moon Ji-woong and Choi Mira

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