Economies of Scale Applicable to Knowledge Industry Centers... ‘BIFCⅡ’ Expected to Deliver Ultra-Large + Ultra-High-Rise Premium

Recently, following apartments and officetels, large-scale knowledge industry centers that can benefit from the 'economies of scale' effect are gaining popularity.

Because ultra-large knowledge industry centers house many tenant companies, they can form and share business infrastructure, creating synergy effects and enabling management cost savings. Additionally, these large complexes are equipped with various support facilities such as commercial spaces, convenience and relaxation areas, and cultural facilities, making them highly preferred by CEOs seeking high-quality working environments.

As a result, large-scale knowledge industry centers have been achieving excellent results in the sales market. The ‘Hyundai Premier Campus’ knowledge industry center supplied in Namyangju, Gyeonggi Province in 2019, with a total floor area of 330,000㎡ and symbolic status as the largest in the country at the time, succeeded in selling out in a short period. Similarly, the ‘GIDC Gwangmyeong’ knowledge industry center supplied in Gwangmyeong, Gyeonggi Province in 2018, emphasized its scale of about 260,000㎡ and contracted all units within just one month.

In particular, since most ultra-large knowledge industry centers are built to super high-rise heights, they often become landmark office facilities representing their regions based on their overwhelming scale, and are regarded as ‘prime investment destinations’ among investors.

An industry insider said, “With the recent oversupply of knowledge industry centers increasing the need to distinguish quality, it is important to pay attention to large-scale knowledge industry centers with excellent product competitiveness such as specialized designs and various support facilities.” He added, “Especially, based on their ultra-large scale and symbolic status representing the region, they can expect abundant tenant demand as well as future capital gains.”

Meanwhile, a landmark-level knowledge industry center will be supplied in April in the Busan International Financial Innovation City. ‘BIFCⅡ’ boasts an overwhelming scale in Busan with a total floor area of 146,553㎡ and a maximum height of 45 floors above ground.

In particular, BIFCⅡ will mark the super high-rise skyline together with the previously established Busan International Financial Center (BIFC) and BI CITY, while completing the Busan International Financial Center (BIFC) and serving as a signal for its leap forward as an international financial hub. The Busan International Financial Center (BIFC), first supplied in 2014, has a maximum of 63 floors and a height of 294m, about 40m taller than the 63 Building in Yeouido, Seoul. BI CITY was also built with a maximum of 49 floors and a height of 183m. With BIFCⅡ reaching up to 45 floors and a height of 199.5m, these three complexes combined are expected to form a skyscraper business town representing not only Busan but the entire country.

The BIFCⅡ knowledge industry center will also be equipped with various support facilities befitting its ultra-large scale. Seminar rooms, conference rooms, lounges, and other shared spaces will be provided so that employees of tenant companies can hold seminars, meetings, and relax in comfortable areas separated from their workspaces. Additionally, large-scale neighborhood living facilities will be established, along with cultural facilities such as a play station, fitness center, and nap rooms, enabling work-life balance without having to go far. Furthermore, tenants can enjoy rest time in various themed landscaping facilities such as Young Park Mall, Growing Garden, and Cloud Garden, which is expected to increase tenant satisfaction.

Moreover, considering the diverse sizes and industries of tenant companies, a stepwise modular floor plan has been designed to allow customized space layouts as needed, and the ceiling height has been raised to 2.9m to maximize openness, which is also notable.

Meanwhile, BIFCⅡ is located in the Busan International Financial Innovation City (Munhyeon-dong area, Nam-gu, Busan Metropolitan City) with a scale of 146,553㎡ spanning from 5 basement floors to 45 floors above ground, housing offices, knowledge industry centers, and support facilities together. Daewoo Construction is in charge of construction, and it is scheduled for supply in April. Unlike apartments, knowledge industry centers allow loans up to 80% of the sale price, and for initial tenant companies, a temporary tax reduction benefit of 50% on acquisition tax and 37.5% on property tax is provided until 2022. Additionally, they are not counted as housing units and have no restrictions on resale of sale rights.

BIFCⅡ plans to establish a sales promotion center.