Seoul Grand Hyatt Hotel Parking Lot Site Development Project 221 Billion PF

[Asia Economy Reporter Lim Jeong-su] A project financing (PF) worth 221 billion KRW has been secured for the development of the Grand Hyatt Hotel parking lot in Namsan, Seoul, into a luxury residential area. The funds raised will be used for land acquisition and other development project expenses.

According to the investment banking (IB) industry on the 19th, Eden Central Hannam and others received a loan of up to 221 billion KRW from a lending consortium led by Meritz Securities. The consortium was divided according to collateral and repayment priority into senior loans of 145 billion KRW, mezzanine loans of 40 billion KRW, subordinated loans of 26 billion KRW, and the last priority loan of 10 billion KRW. The loan maturity is one year, with the principal to be repaid in a lump sum at maturity.

Eden Central Hannam is the project-specific vehicle (PFV) for the development of the parking lot site southwest of the Hyatt Hotel. It was established through joint investment by Eden Asset Management and the developer UOD. The plan is to build a luxury townhouse and detached housing complex on five parcels totaling 8,757㎡ (approximately 2,650 pyeong) located at 747-1 Hannam-dong, Yongsan-gu, Seoul. The goal is to start construction and sales simultaneously in August next year. The raised funds are expected to be used for land acquisition and site development work.

Eden Central Hannam acquired the site by participating in a bid conducted by Seoul Mirama Co., Ltd., the owner of the Hyatt Hotel land and building, last November. Seoul Mirama had acquired the Hyatt Hotel with funds from KH Group’s KH Philux, KH Electron, KHE&T, and Jangwon Tech but put the parking lot site back on the market due to the need for financial restructuring caused by COVID-19.

An IB industry official said, "Hannam-dong, where the Hyatt Hotel parking lot site is located, already has luxury residences such as Nine One, UN Village, and The Hill, and with real estate benefits from Yongsan National Park and New Town construction, it is a highly favorable area. Demand for high-end housing remains steady, so the luxury housing sales are expected to be successful."