"LTV 150%, Repayment of Moving Expenses One Year After Move-in" Daewoo E&C's Bold Proposal for Hannam 2 District

Hannam Summit Exterior

Daewoo E&C, competing for the contract under the name 'Hannam Summit' in the redevelopment project of Hannam 2 District in Yongsan-gu, Seoul, has presented unprecedented business conditions.

On the 30th, Daewoo E&C announced, "We have proposed to the union an unprecedented 'record-breaking business condition' never seen before in the maintenance industry, including ▲ full responsibility for project financing ▲ LTV 150% for union members' relocation costs ▲ minimum relocation cost of 1 billion KRW per household ▲ 1-year grace period for relocation cost repayment."

First, Daewoo E&C plans to take full responsibility for financing all costs necessary for the union to proceed with the redevelopment project, including the union's project expenses, relocation costs, additional relocation costs, construction costs, and tenant deposits. This means Daewoo E&C will bear the financial burden, which has been the biggest difficulty for most maintenance project unions. Amid recent loan regulations and external uncertainties, the union will be able to secure stable financing backed by Daewoo E&C's credit.

The area that Hannam 2 District union members are most focused on is the relocation costs. Daewoo E&C stated that it will cover a total of 150% relocation costs by supporting an additional 110% relocation cost on top of the basic legal limit LTV (Loan to Value ratio) of 40%.

Furthermore, to ensure no issues arise for union members with previously low appraisal values, a minimum relocation cost of 1 billion KRW will be guaranteed to everyone.

A Daewoo E&C official said, "Considering the rental prices of newly built apartments near Hannam-dong and Yongsan, we will support a minimum relocation cost of 1 billion KRW to fundamentally solve relocation issues and maintain a comfortable living environment during the relocation period." Additionally, for the first time in the industry, Daewoo E&C plans to offer a '1-year grace period' on the repayment of relocation costs due at move-in, easing the burden on union members not only during relocation but also at move-in.

Hannam Summit Perspective View

Daewoo E&C also plans to provide ▲ payment of shared costs two years after move-in ▲ early refund payments according to the timing of general sales ▲ commercial space sales in collaboration with 'Avison Young,' a global commercial real estate consulting firm ▲ landscaping services for 10 years ▲ and VVIP services befitting the highest standards, including hotel-grade breakfast service, housekeeping, and childcare, through a partnership with Tower PMC, which provides top 1% concierge services at Hannam The Hill and Tower Palace.

Daewoo E&C is also putting great effort into the design. The global architectural design group 'JERDE,' which has executed landmark projects worldwide such as the Dubai International Financial Centre and the Bellagio Hotel in Las Vegas, the world-renowned landscape design firm 'STOSS' led by Harvard University landscape architecture professor Chris Reed, and the top domestic interior design group 'SWNA,' which designed the medals for the Pyeongchang Winter Olympics, will participate in the interior design.

A Daewoo E&C official said, "We have proposed unprecedented and bold conditions in maintenance projects, from design to business terms," adding, "We will devote all our capabilities to making Hannam 2 District the most successful project site in the vicinity."