[Asia Economy Reporter Kim Hyemin] The redevelopment association of Sindang 8 District in Jung-gu, Seoul, which parted ways with DL E&C last year, has re-entered the process of selecting a construction company. This district is located right next to Cheonggu Station on Subway Lines 5 and 6, making it a prime station-area complex.
According to the maintenance industry on the 22nd, the Sindang 8 District redevelopment association announced a bid for selecting a construction company last week. They plan to accept bids until November 7 and then finalize the construction company selection through a general meeting. Earlier that day, a site briefing session was scheduled. The association estimated the planned construction cost at 375.267 billion KRW, approximately 6.5 million KRW per 3.3㎡. This is about 65 billion KRW higher than the construction cost at the time of the 2019 construction company selection.
Sindang 8 District previously experienced conflict over the construction company issue. DL E&C won the construction rights in 2019 after a close contest with Dongbu Construction, but failed to resolve disputes over construction costs and the use of a high-end brand, leading to the termination of the construction contract in July last year. At that time, association members expressed dissatisfaction with the high construction costs proposed by DL E&C even before the construction company selection and continuously demanded a switch to the high-end brand 'Acro.' Subsequently, the Sindang 8 District association reportedly approached Samsung C&T for bid participation, but the deal was not finalized.
Currently, the construction companies vying for the construction rights are Daewoo E&C, GS Engineering & Construction, and POSCO Engineering & Construction. These companies previously held separate preliminary briefing sessions for association members. Since the conflict with DL E&C stemmed not only from construction costs but also from differences over the use of high-end brands, these companies are known to have all pledged to use their own high-end brands.
Daewoo E&C owns the 'Summit' brand, POSCO E&C launched the new 'Otier' brand in July, and GS E&C has the single brand 'Xi' but has experience successfully completing sales even in the Gangnam area. They are also expected to attend the site briefing session held that day.
Meanwhile, the Sindang 8 District redevelopment project, located around 321 Sindang 4-dong in Jung-gu, is a large-scale project to build 16 buildings with a total of 1,215 households, ranging from 5 basement floors to a maximum of 28 floors above ground. This is the first large apartment complex with over 1,000 households to be built in Jung-gu, especially in the Sindang-dong area, since Namsan Town in 2002.
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