Old 'Gangnam Apartment', a Large Complex Apartment
Reconstruction Delayed for Over 15 Years
Normal Progress After SH Corporation Joint Project Implementation
1 Year and 3 Months to Management Disposition Plan Approval
Perspective view of 'Hillstate New Foret' in Sillim-dong, Gwanak-gu, Seoul / Photo by SH Corporation
[Asia Economy Reporter Hwang Seoyul] Seoul Housing and Communities Corporation (hereinafter SH Corporation), which participated as a joint project implementer, has begun occupancy of the reconstruction and maintenance project complex of 'Gangnam Apartment.'
On the 2nd, SH Corporation announced that 'Hillstate New Foret,' the reconstruction complex of Gangnam Apartment located in Sillim-dong, Gwanak-gu, Seoul, where the joint project has been implemented since 2016, started occupancy the day before. 'Hillstate New Foret' had been delayed for more than 15 years, but after SH Corporation became a joint project implementer in December 2016, the project proceeded normally.
The complex is a large-scale apartment complex with 7 buildings, 1,143 units, ranging from 3 basement floors to a maximum of 35 floors above ground. It is supplied with 878 units for union members, 126 units of happy housing, and 139 units of publicly supported private rental housing. The former 'Gangnam Apartment' consisted of 16 buildings with 876 units, ranging from 1 basement floor to 6 floors above ground.
'Hillstate New Foret' is located within a 5-minute walk from Guro Digital Complex Station on Subway Line 2, making it a station area with excellent transportation accessibility. Nearby, there are Jowon Elementary School and Dorimcheon Stream, providing high living convenience. Additionally, childcare and sports facilities are established within the complex.
'Gangnam Apartment' was built in 1974 and was designated as a disaster-risk facility (Grade D) in 2001, making it unsuitable for residence and requiring rapid reconstruction. However, due to improper administrative handling by the union at the time, various permits were invalidated, and union members' properties were released through auctions and public sales. Due to low project profitability and a real estate market downturn, the construction company was replaced four times, making it practically impossible to proceed with the project independently.
SH Corporation's participation as a joint project implementer became the solution to the slow project progress. SH Corporation restructured the project through a New Stay-linked maintenance project (Seoul REITs No.4), securing public interest by supplying rental housing cheaper than the surrounding market price and reducing construction costs by resolving unsold risks during the real estate slump. They increased the floor area ratio up to 405%, supported initial project costs, and played a decisive role in resolving the union's debt and auction/public sale crisis.
Accordingly, a Task Force (TF) was formed with Seoul City and Gwanak-gu, establishing a close cooperation system, and completed from contract signing to maintenance plan changes, project implementation plan changes approval, construction company selection, and management disposition plan approval in just 1 year and 3 months.
Kim Heondong, President of SH Corporation, said, "I feel great pride that SH Corporation and joint project implementation led the reconstruction project of the aging apartment at risk of suspension to success," adding, "Going forward, SH Corporation will create various project models that can contribute to the housing stability of Seoul citizens by referring to the 'Gangnam Apartment' project structure."
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