Ulsan B04 Redevelopment to Select Construction Company via Private Contract

Consortium Requests Samsung C&T-Hyundai Construction to Join Consortium Project

A panoramic view of the area around 190-4, Gyodong, Jung-gu, the Ulsan B04 redevelopment zone.

[Asia Economy Reporter Cha Wanyong] The redevelopment project of Ulsan Metropolitan City Jung-gu B04 district (around 190-4 Gyodong) attracting great expectations as the largest redevelopment project in the region has decided to select the construction company through a private contract. Initially, it was expected that Samsung C&T and Hyundai Engineering & Construction, ranked first and second in construction capability evaluation, would participate in the bidding, but both companies decided not to participate due to the recent real estate market downturn. The association also requested Samsung C&T and Hyundai Engineering & Construction to participate in the project as a consortium.

According to the Ulsan B04 redevelopment association and the urban maintenance industry on the 9th, the association officially sent a letter requesting consortium private contract participation to Samsung C&T and Hyundai Engineering & Construction immediately after the second construction company selection held on the 2nd was canceled. This decision was reportedly made at the association advisory group’s integrated meeting.

Accordingly, Samsung C&T and Hyundai Engineering & Construction are actively reviewing the consortium for the Ulsan B04 redevelopment project. However, since there are many issues to be negotiated, such as project conditions between the association and construction companies, share distribution between Samsung C&T and Hyundai Engineering & Construction, selection of the lead company, and brand order, the final decision is expected to be postponed until next year.

A Samsung C&T official said, "We have received the official letter requesting consortium participation from the association," adding, "There are many aspects to review, so nothing has been decided yet."

A Hyundai Engineering & Construction official said, "We are reviewing the request for consortium participation," and added, "Although the market situation is not favorable, we are examining it from various angles."

In the maintenance industry, it is expected that the Samsung C&T-Hyundai Engineering & Construction consortium will be smoothly formed. Both construction companies have not withdrawn from the site and are promoting to the association and its members. In fact, both Samsung C&T and Hyundai Engineering & Construction are building promotional centers for the B04 redevelopment. The opening date for both is scheduled for the 13th.

Meanwhile, the Ulsan B04 redevelopment project involves redeveloping the area around 190-4 Gyodong, Jung-gu, constructing 55 apartment buildings with 4,080 households (including 206 rental units) from basement level 4 to ground level 29. The expected project cost exceeds 2 trillion won, and the estimated construction cost is 1.2 trillion won, making it the largest redevelopment in the region. The project has been evaluated as highly profitable, with 2,946 general sale units excluding 1,134 units allocated to association members.