Hyundai Engineering to Launch British Godeok, a British-Themed Family Street Mall in the UK, for Sale in December

- UK-themed 'Union Jack Square', 'Kings Cross', 'Big Ben', etc.
- 555 commercial units in Godeok Internationalization Plan District... Large kids facility, bookstore, and SSM planned
- About 750m from Samsung Electronics Pyeongtaek Campus, near Pyeongtaek Brain City

Hyundai Engineering and Pyeongtaek Godeok PFV Co., Ltd. plan to launch sales next month for 'British Godeok,' a commercial facility of Hillstate Godeok Central, located in Block Ebc-2 of the Godeok Internationalization Planning District.

'British Godeok' is the largest commercial facility within Godeok International New City. It covers a total floor area of approximately 71,166㎡, with 555 units spanning from basement level 1 to the 5th floor above ground, designed as a family street mall with a British theme.

First, the central plaza called 'Union Jack Square,' featuring landscaping designs inspired by the British flag's Union Jack pattern, will be established. As an event-type plaza, it will showcase beautiful fountain shows, media art, and Big Ben, positively influencing customer attraction and revitalizing the commercial area.

Additionally, themed gates such as 'King's Cross,' modeled after the train station where the Hogwarts Express departs in Harry Potter, the pop music-themed landmark 'Abbey Road,' recreating the famous Beatles crosswalk, and 'Brick Lane,' showcasing the essence of street art like graffiti, will be implemented. Especially, Samsung C&T's landscaping team (formerly Everland), which handled Everland's landscaping, will specialize in landscaping and sculptures, creating the 'Bedford Garden' and 'Water Playground' linked to the adjacent children's neighborhood park. Based on this exotic theme, it is expected to attract a diverse consumer base regardless of age or gender and become a local landmark.

Many specialized designs will also be introduced. Among the 243 units on floors 2 to 4, nearly half?118 units?will feature terrace-style designs to enhance openness and views. Furthermore, a parking lot with a total capacity of 676 vehicles will be provided to alleviate inconveniences for customers visiting by car. Commercial facilities with good parking conditions can gain an advantage in attracting customers over nearby stores, and their excellent accessibility is expected to positively impact the activation of the commercial district.

Benefits from attracting large anchor tenants are also anticipated. Plans include the entry of large bookstores and SSMs (Super Supermarkets), which are expected to boost sales of nearby stores and overall commercial district revitalization. Particularly, with growing interest in the angel industry targeting infants and toddlers, the planned entry of the largest kids' facility in Godeok (approved by Pyeongtaek City Hall in October 2020, based on contract area) is expected to have a ripple effect.

'British Godeok' boasts excellent location conditions even within the Godeok Internationalization Planning District. Situated along the main road in the center of Godeok International New City, it offers excellent accessibility and proximity to the central commercial area, enabling synergy effects through linkage between commercial zones. Additionally, based on a superior transportation network, it is well-positioned to absorb metropolitan demand. It is located six minutes by car from Seojeong-ri Station on Seoul Metropolitan Subway Line 1 and within about 10 minutes from Jije Station, where KTX (planned), SRT, and Line 1 stop, facilitating easy access from Seoul, the metropolitan area, and nationwide. The nearby BRT station is also expected to attract consumers from adjacent areas.

The demand base is abundant. 'British Godeok' is located in the Godeok Internationalization Planning District, developed on a site of approximately 17.31 million㎡ with an investment of 8.1603 trillion KRW to foster residential, commercial, and industrial functions. It is planned for a population of 140,000 and 59,000 housing units. In particular, about 2,600 households, including 660 households in the nearby Baebong Summit, are expected to secure a fixed consumer base within walking distance. Various schools (planned) are located nearby, and neighborhood parks are close, allowing natural inflow of consumers. Approximately 226 businesses and 20,000 workers operate within the northern living zone of the project area, representing potential demand. Especially, since the commercial land ratio in the Godeok Internationalization Planning District is only about 2%, high scarcity value is expected to enable stable tenant supply.

The halo effect of large corporations is also anticipated. Samsung Electronics Pyeongtaek Campus, the world's largest semiconductor production line, is located nearby, providing a consumer base with high purchasing power. According to data released by Pyeongtaek City Hall, Samsung Electronics Pyeongtaek Campus covers about 2.89 million㎡. Since the first production line began operation in 2017, the second line has been sequentially operating since January this year. The operation has generated a production inducement effect of 41 trillion KRW, and the employment inducement effect is estimated at about 180,000 direct and indirect jobs.

Moreover, Samsung Electronics announced plans for additional investments exceeding 100 trillion KRW by 2025, including production line expansions. The third production line is scheduled to operate in 2023, which is expected to bring further employment inducement effects and relocation of related companies to form a business network.

There are also abundant favorable factors to expand the commercial district. Pyeongtaek 'Brain City,' developed on a site of approximately 4.82 million㎡ in Doil-dong, Pyeongtaek, aiming to attract industries such as electronic components, computers, audiovisual, and communication equipment manufacturing, is scheduled for completion next year. The relocation of administrative agencies, including Pyeongtaek City Hall, is also underway to create an administrative town. Once completed, it is expected to secure about 40,000 resident households and increase floating population due to the influx of workers, leading to commercial district expansion.

Benefits from the low-interest-rate trend are also expected. The Bank of Korea lowered the base interest rate from 1.25% to 0.75% in March this year and further reduced it by 0.25% in May, making income-generating real estate such as commercial facilities an attractive investment alternative. According to the Korea Real Estate Board, the nationwide investment yield for medium-to-large commercial properties was 2.49% in the first half of this year, which annualizes to nearly 5%. In contrast, the highest interest rate offered by savings products from commercial banks was around 1.9%.

Supported by this trend, market liquidity has also reached record highs. According to the Bank of Korea's 'Monetary and Liquidity Status in August 2020,' broad money supply (M2) in August reached 3,101.6 trillion KRW, an increase of 9.8 trillion KRW (0.3%) from the previous month and a 9.5% increase year-on-year. M2 includes cash, demand deposits, money market funds (MMF), time deposits under two years, and negotiable certificates of deposit (CDs), representing money that can be readily converted into cash for investment when suitable opportunities arise.

Meanwhile, the fact that commercial facilities are less affected by regulations also raises expectations. While the government has been announcing strong real estate measures targeting apartment and housing markets, recent regulations on officetels have led to a balloon effect benefiting commercial facilities. According to the Korea Real Estate Board, the number of commercial and office real estate transactions nationwide in the third quarter of this year was 93,428, a 20,357 (27.9%) increase compared to 73,071 transactions in the previous quarter. Compared to 78,110 transactions in the same period last year, it increased by 15,318 (19.6%).

A sales official stated, "'British Godeok' is the largest commercial facility within the Godeok Internationalization Planning District with excellent product competitiveness and abundant favorable factors to expand demand, making it highly likely to develop into a landmark commercial district in the region. In particular, the government's strong real estate measures targeting apartments and housing markets, the historically low base interest rates, and the resulting abundant liquidity are also reasons for the high interest in 'British Godeok.'"

The 'British Godeok' model house will be located at 1102-2, Bijeon-dong, Pyeongtaek City.