Sahakyeongeum Signs Construction Contract for Seoul Hoegwan Reconstruction Project

[Asia Economy Reporter Minji Lee] The Private School Teachers' Pension Service (hereinafter referred to as PSTPS) announced on the 23rd that it has selected Samsung C&T as the construction company for the reconstruction project of Seoul Hall located in Yeouido, Seoul, and will sign the final contract.

The PSTPS Seoul Hall reconstruction project is being promoted through an indirect development method by entrusting it to a real estate development specialist company to enhance expertise and profitability. Accordingly, PSTPS selected Koramco Asset Trust Co., Ltd. (hereinafter Koramco Asset Trust) as the entrusted company for the real estate reconstruction project and established a REIT (Cokreptifi Entrusted Management Real Estate Investment Company_SPC).

Koramco Asset Trust, entrusted with this project, sent out Request for Proposals (RFPs) to multiple construction companies since June to select a construction company and held a site briefing session on July 1. Among the four construction companies that participated in the bidding, Samsung C&T was ultimately selected as the preferred negotiation partner, and plans to sign the construction contract.

The PSTPS Seoul Hall is located in Yeouido, Seoul, and was completed in 1982, making it an approximately 38-year-old aging office building. As rental income declined, the need to enhance rental competitiveness and improve the hall’s financial status through reconstruction has been raised.

The PSTPS Hall, with a total floor area of approximately 41,608㎡ (about 12,568 pyeong) spanning from three basement floors to 20 above-ground floors, is planned to be reborn through reconstruction as a prime-grade office building with six basement floors to 42 above-ground floors and a total floor area of 141,668.98㎡ (about 42,855 pyeong). The total project cost is approximately 480 billion KRW, with construction costs around 350 billion KRW.

The newly constructed building will be named ‘TP Tower’ and designed with the concept of a “lighthouse illuminating Yeouido.” A connecting passageway will be installed to Yeouido Station (Subway Lines 5 and 9) to ensure optimal accessibility. Construction is scheduled to begin in October, aiming for completion by the end of 2023. After completion, leasing, operation, and overall asset management will be entrusted to a management company for about 30 years.

Joo Myung-hyun, Director of PSTPS, stated, “The Seoul Hall reconstruction project is one of Yeouido’s landmark projects, and the office building boasting an optimal location is expected to be advantageous in future rental competitiveness,” adding, “This favorable rental competitiveness will achieve stable long-term hall operation revenue, which will lead to increased fund income.”