Shin Young Secures 118 Billion KRW Project Financing for 'Brighton Hannam' Development

[Asia Economy Reporter Lim Jeong-su] Real estate development company Shinyoung has raised 118 billion KRW in project financing (PF) funds for the luxury residential project "Brighton Hannam" in Hannam-dong, Yongsan-gu, Seoul. Daewoo E&C is responsible for construction and guaranteed completion, building apartments and officetels.

According to the investment banking (IB) industry on the 29th, Shinyoung's special purpose vehicle established for the Brighton Hannam development project, "Shinyoung Hannam-dong Development PFV Co., Ltd. (Shinyoung Hannam PFV)," will receive a PF loan of 118 billion KRW underwritten by Meritz Securities. The PF loan has a maturity of 3 years and 6 months, with a lump-sum repayment at maturity, but early repayment is also possible.

The raised funds will be used for land acquisition and financial costs. Through Shinyoung Hannam PFV, Shinyoung plans to construct a luxury residential complex consisting of one building with 8 basement floors and 16 above-ground floors on lot 90-4 in Hannam-dong. The complex will comprise a total of 142 units, including 121 officetels sized 51 to 84 square meters and 21 apartments sized 103 to 117 square meters.

Daewoo E&C will take charge of construction and guarantee completion. If the construction permit is not obtained within the deadline, the company will bear the burden of repaying the PF loan. Meritz Securities, the PF underwriter, also provided credit support during the loan securitization process.

Meanwhile, the sale of Brighton Hannam is expected to begin next month.