Geoje Gohyeon Port Phase 3 Development Project Secures 190 Billion KRW PF Funding

[Asia Economy Reporter Lim Jeong-su] Project financing (PF) worth 190 billion KRW has been secured for the third phase redevelopment project of Gohyeon Port in Geoje City, Gyeongnam Province.

According to the investment banking (IB) industry on the 1st, Big Island Geoje PFV raised 190 billion KRW in PF funds under the lead management of Eugene Investment & Securities. The loan was executed in two tranches according to repayment priority: senior loan of 170 billion KRW and subordinated loan of 20 billion KRW. The loan maturity is one year.

Big Island Geoje PFV is a project company established to implement the redevelopment project in the maritime area of Gohyeon-dong and Jangpyeong-dong, Geoje City, Gyeongnam Province. Bugang Comprehensive Construction holds 55% of the common stock as the largest shareholder. Geoje City Hall and Daelim Industrial each hold 10%, and Kyobo Securities and Hyundai Securities each hold 2.50% of the common stock.

Exion (10%), KB Real Estate Trust (5.0%), and RS Investment (5.0%) hold preferred shares. At the time of the corporation’s establishment, Kyobo Securities (15.0%) and KB Real Estate Trust (5.0%) held 15% of the preferred shares, but Kyobo Securities transferred its shares to Exion and RS Investment, resulting in the current shareholding structure.

The procured funds will be used for construction costs and other expenses related to the third phase redevelopment project. The Geoje Gohyeon Port development project has completed the first and second phases and is currently underway with the third phase. The third phase is scheduled for completion in 2023.

The Geoje Big Island project involves reclaiming the sea in front of Geoje Gohyeon Port to create a complex planned city by 2023 on a site of 599,135 square meters, featuring residential, commercial, business, cultural tourism, and park functions. It is broadly divided into four zones: Marine Cultural Tourism District, Complex Port District, Public Facilities District, and Complex Urban District.

The third phase project had been delayed due to difficulties in securing project funds but has recently begun in earnest. The project area totals 152,078 square meters, with a project cost of 215.7 billion KRW. Hoban Construction is in charge of construction. The project period is 49 months from the start date.