Pyeongtaek Hwayang District Urban Development Project 670 Billion PF

[Asia Economy Reporter Lim Jeong-su] The development project of Pyeongtaek Hwayang District (Pyeongtaek Port Hwayang New Town) is set to accelerate as a project financing (PF) loan worth 674 billion KRW has been secured.

On the 25th, according to the investment banking (IB) industry, the Pyeongtaek Hwayang District Urban Development Project Association received a total PF loan of 674 billion KRW from a consortium of financial institutions. The loan was divided into senior tranche of 350 billion KRW, mezzanine tranche of 247 billion KRW, and junior tranche of 77 billion KRW based on collateral and repayment priority.

The funds raised will be used for the development of the Hwayang District. The Hwayang District urban development project aims to develop a new town accommodating about 20,000 apartment units and a population of 54,084 in the area of 454-2, Hwayang-ri, Hyeondeok-myeon, Pyeongtaek-si, Gyeonggi-do. The site area is approximately 2,791,195㎡ (about 844,000 pyeong), similar in size to Yeouido, making it the largest private-led urban development project.

DL Construction Co., Ltd., Dongkwang Construction Co., Ltd., and DL E&C Co., Ltd. are participating as contractors to develop residential, commercial, and public facility sites. With the PF financing secured, construction is expected to proceed in earnest. The contractors have provided a completion guarantee agreement to obtain project completion approval within four years during the PF process.

The Hwayang New Town will also host the Anjung branch office of Pyeongtaek City Hall, which is scheduled to be upgraded to Seogu District Office in the future. Additionally, a large general hospital with 350 beds, spanning a total floor area of 22,770㎡ with 10 floors above ground and 4 basement levels, will be established. Eight elementary, middle, and high schools along with various public facilities will also be built.

An IB industry official said, "Although there were some issues during the selection process of the PF lead manager, the successful PF financing will accelerate the project."