[Asia Economy Reporter Lim Jeong-su] Project financing (PF) worth 460 billion KRW has been secured for the construction of Royal Park City Prugio at Wanggil Station in Geomdan, Incheon.
According to the investment banking (IB) industry on the 5th, DK First, a special purpose corporation, received a PF credit line of 450 billion KRW from a lending consortium led by Hana Financial Investment. Investors were recruited by dividing the loan into senior tranche of 380 billion KRW and subordinated tranche of 70 billion KRW based on collateral and repayment priority.
The Royal Park City project is a massive development supplying a total of 13,000 households in the area of 133-3, Wanggil-dong, Seo-gu, Incheon. The funds raised this time will be used for the construction of the 9-1 block (BL) apartments, which is part of the entire project. The project involves building 15 buildings with 1,500 households on a 73,250㎡ (22,197 pyeong) site, ranging from two basement floors to 29 floors above ground.
This project is being promoted through a managed land trust method by Hana Asset Trust. Daewoo Construction is participating as the contractor and has provided a completion guarantee agreement to finish construction within 34 months. If permits and approvals are not obtained from local governments or other authorities within the deadline, the PF debt repayment responsibility will be borne.
The Royal Park City project is a mini new town-scale development, and in addition to this PF, additional financing for nearby development projects is expected to proceed one after another. An IB industry official said, "Starting with this PF financing, construction for surrounding development projects will be in full swing."
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