[Asia Economy Reporter Lim Jeong-su] Funding for land acquisition (bridge loan) for the Segyo urban development project in Osan City, Gyeonggi Province has been secured. One of the sites for the Segyo urban development project, the acquired land will be developed into multi-family housing (apartments) with POSCO Construction as the contractor.
According to the investment banking (IB) industry on the 27th, Idam Osan Jeil Cha PFV (Idam Osan PFV), a special purpose vehicle for the project, received a development loan of 183 billion KRW from a group of lenders including securities firms. The loan has a maturity of 1 year and 6 months with a lump-sum repayment at maturity.
The lender group reportedly includes multiple financial companies such as Hi Investment & Securities and BNK Investment & Securities. The loan was divided according to repayment and collateral priority into senior tranche of 110 billion KRW, senior mezzanine tranche of 20 billion KRW, mezzanine tranche of 30 billion KRW, and junior tranche of 23 billion KRW.
The procured funds will be used to secure land for the urban development project. The borrower, Idam Osan PFV, is the developer of the multi-family housing project at 26 Segyo-dong, Osan City, Gyeonggi Province. The site currently houses companies such as Daeil Chemical Industry and is located opposite the Osan Sema Ipyunhansesang Apartments.
After securing the land, Idam Osan PFV will proceed with permits and approvals and begin construction of the multi-family housing in 2023. Sales will be promoted simultaneously with the start of construction. POSCO Construction is expected to take charge of construction and provide a completion guarantee agreement.
POSCO Construction has previously supplied premium apartments such as ‘The Sharp Osan Central’ and ‘Seodongtan Station The Sharp Park City’ in Osan City. Additionally, it is currently selling ‘The Sharp Osan Elifore’ apartments in the Seodong 39-1 area of Osan City.
An IB industry official said, "Osan New Town is adjacent to Dongtan New Town, allowing utilization of infrastructure, and is close to Pyeongtaek where Samsung Electronics and LG Electronics are located, making it a newly emerging new town area," adding, "With POSCO Construction, a reputable builder, in charge of construction, the development project is expected to be successful."
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