KRW 620 Billion Scale... Approaching KRW 2 Trillion in Urban Renewal Project Orders for 3 Consecutive Years
[Asia Economy Reporter Kangwook Cho] Hyundai Engineering & Construction announced on the 16th that it has secured the construction rights for the Busan Beomcheon 4 District Housing Redevelopment Project, bringing it close to achieving 2 trillion KRW in urban renewal project orders for three consecutive years.
The Busan Jin-gu Beomcheon 4 District Housing Redevelopment Project Association held an extraordinary general meeting on the 14th to select a construction company and conducted a member vote on a private contract with Hyundai Engineering & Construction, the preferred negotiation partner. In this vote, Hyundai Engineering & Construction was finally selected as the construction company with a 96.5% approval rate (573 votes in favor out of 594).
Earlier, eight companies including Hyundai Engineering & Construction attended the site briefing held in April, but the bidding closed with Hyundai Engineering & Construction as the sole bidder, resulting in a failed bid. Subsequently, only Hyundai Engineering & Construction participated in the second site briefing held last month, leading the association to select Hyundai Engineering & Construction as the preferred negotiation partner and switch to a private contract.
During this process, Hyundai Engineering & Construction did not retrieve the proposal prepared for competitive bidding during the first bid but unusually kept it in a safe designated by the association's appointed bank. This was to comply with the association's request to prevent the construction company from changing bid conditions if competitive bidding did not materialize. Additionally, Hyundai Engineering & Construction expressed strong determination to win the contract by stating, "Regardless of the bidding format, we will make Beomcheon 4 District the best landmark in Seomyeon, Busan, based on the initial proposal."
The Beomcheon 4 District Housing Redevelopment Project is located at 30 Mallisan-ro 61beon-gil, Jin-gu, Busan (Beomcheon-dong 1269-15), covering an area of 91,521㎡. The project applies a floor area ratio of 281.7% to construct 18 apartment buildings with 6 basement floors and 36 above-ground floors, comprising 2,604 housing units (including 144 officetels) and ancillary welfare facilities. Beomcheon 4 District is within a 10-minute walk to Beomnaegol Station on Busan Subway Line 1, placing it in a semi-station area, and is about 1 km from Seomyeon, Busan's largest downtown area, offering excellent location conditions. The site is also an "elementary school within walking distance" complex, adjacent to Seonam Elementary School, with Seomyeon Middle School and Baejeong High School nearby, providing an excellent educational environment.
Although Beomcheon 4 District is located near Seomyeon, Busan's largest downtown and financial-commercial center, it had been undervalued as a residential area due to poor living conditions and inconvenient public transportation, blocked by the Beomcheon Railway Vehicle Maintenance Depot, which had been an obstacle to urban expansion and surrounding area development for over 100 years. However, with the Beomcheon Railway Vehicle Maintenance Depot passing the government's preliminary feasibility study in June last year and its relocation confirmed, the area now has a location directly connected to Seomyeon. The site is planned to be developed into a medical complex, medical town, cultural and commercial facilities, and parks, expected to create synergy with the Beomcheon 4 District redevelopment project in the future.
Hyundai Engineering & Construction named the complex "Renaicent," combining the meanings of Beomcheon's renaissance and Seomyeon's residential center, expressing its ambition to make Beomcheon 4 District the center and best landmark of Seomyeon. To this end, it proposed a specialized design inspired by the sea breeze, waves, and a high-class cruise ship in collaboration with the world-renowned architectural design group CallisonRTKL, which has participated in projects such as Banpo 1st Complex 1, 2, and 4 District reconstruction and Hannam 3 District redevelopment. Additionally, the project will feature three sky community spaces, a duplex indoor golf practice range, a duplex fitness center, and other premium community facilities to enhance the complex's prestige. Various terrace houses are also planned to increase residential satisfaction and the value of the complex.
With the Beomcheon 4 District contract, Hyundai Engineering & Construction can create a large-scale Hillstate brand town with about 4,000 households in Beomcheon-dong, including the Beomcheon 1-1 District won last year. Hyundai Engineering & Construction was selected as the construction company for the Beomcheon 1-1 District redevelopment project last year, located at 850-1 Beomcheon-dong, Jin-gu, Busan, which includes 1,323 apartment units in eight buildings with six basement floors and 49 above-ground floors, 188 officetels, and commercial facilities.
With the Beomcheon 4 District housing redevelopment project win, Hyundai Engineering & Construction recorded orders worth 1.912 trillion KRW this year, and with the remodeling contract for Beksan Apartment in Geumho-dong, Seongdong-gu, Seoul, scheduled for the end of this month, it is expected to surpass 2 trillion KRW in urban renewal project orders for three consecutive years.
A Hyundai Engineering & Construction official said, "Our excellent financial soundness, cash liquidity, technical know-how, and brand power seem to play a significant role in being selected as a trusted business partner." He added, "We will strive to achieve contract wins by providing the best project proposals that satisfy association members not only in redevelopment and reconstruction projects such as Songpa Macheon 4 District and the upcoming bids for Heukseok 9 District and Namyangju Jinju Apartment but also in major remodeling projects in Seoul and the metropolitan area."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
