[Asia Economy Reporter Lim Jeong-su] DS Networks, emerging as a leading domestic developer, has secured project financing (PF) funds amounting to 585 billion KRW for the construction of apartments in Songdo, Incheon. SK Ecoplant (formerly SK Construction), partnering with DS Networks, will undertake the construction and participate in the development project.
According to the investment banking (IB) industry on the 4th, DS Networks raised 585 billion KRW in PF from a consortium of financial institutions including securities firms. The financing was divided into senior tranche of 500 billion KRW and subordinated tranche of 85 billion KRW based on collateral and repayment priority, with investors recruited accordingly. The PF loan has a maturity of four years.
The raised funds will be used for the development project of Incheon Metropolitan City Songdo Landmark City A9BL (block). The project involves constructing and selling apartments on a 67,774.3㎡ (25,380 pyeong) site located at 396-1, Songdo-dong, Yeonsu-gu, Incheon, consisting of 7 buildings ranging from 2 basement floors to 49 above-ground floors, totaling 1,114 households.
Last year, DS Networks participated in a land bid in the 6th district of Songdo International City under the Incheon Free Economic Zone Authority and won the project site for 237.2 billion KRW. With the project permits granted this year, the development project has been officially launched.
SK Ecoplant is responsible for the construction of this project. During the PF financing process, SK Ecoplant provided a completion guarantee agreement. If the usage approval is not obtained within the deadline, SK Ecoplant will bear the burden of repaying the PF loan.
DS Networks has recently risen as a leading domestic developer. Leveraging strong cash mobilization capabilities, it has participated in large-scale mergers and acquisitions (M&A) such as Daewoo Construction and Doosan Construction, established DS Asset Management, and expanded its financial affiliates by acquiring Taurus Securities.
Regarding SK Ecoplant, the two have been jointly promoting development projects since 2016. They have strengthened their position as developers by supplying projects such as Songdo SK View with 2,100 households, LuOne City SK Leaders View Phase 1 consisting of 2,378 apartments and 726 officetels, and LuOne City SK Leaders View Phase 2 with 1,789 households.
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