'Hanwha Construction Consortium' Selected as Preferred Negotiator for Daejeon Station Area... 910 Billion KRW Scale

Perspective view of the Daejeon Station area development project by Hanwha Construction consortium (Provided by Korea Railroad Corporation)

[Asia Economy Reporter Chunhee Lee] Hanwha Construction Consortium has been selected as the preferred negotiator in the public offering for the developer of the Daejeon Station area development project conducted by Korea Railroad Corporation (KORAIL). The total project cost is approximately 910 billion KRW.

KORAIL announced on the 3rd that Hanwha Construction Consortium was selected as the preferred negotiator through a 90-day public offering process held from March to June. Hanwha Construction participated in the consortium along with Gyeryong Construction and Jangwon Construction. The HDC Hyundai Development Consortium was named the second-ranked negotiation candidate.

The Daejeon Station area development project involves redeveloping about 30,000㎡ of commercial land in Complex Zone 2 near Daejeon Station, out of approximately 100,000㎡ in the Soje and Jeongdong districts of Dong-gu, Daejeon, designated as a redevelopment promotion zone. According to the project plan submitted by Hanwha Construction Consortium, a mixed-use facility including residential, retail, office, cultural, and lodging spaces will be constructed with a total floor area of 350,000㎡ and a total project cost of 910 billion KRW, under the concept of "connecting the city's space, time, and culture."

As a result of the blind evaluation of the project plans, both participating consortia scored above the minimum qualification score of 480 out of 600 points set in the public offering guidelines, thus qualifying as "eligible." However, Hanwha Construction Consortium received higher scores in price and planning categories, leading to its selection as the preferred negotiator.

Going forward, KORAIL and Hanwha Construction Consortium will negotiate for 60 days on matters related to project planning, permits, construction, and operation management, and plan to sign a development agreement for the Daejeon Station area project. Subsequently, related permits such as changes to the redevelopment promotion plan and project implementation approval will proceed.

Additionally, to avoid delays in construction, discussions with Daejeon City will be held to promote the relocation of railway facilities within the project site, including the establishment of the Daejeon Integrated Office and the development of a transfer center site to secure public parking lots.