Prime Land Next to Pangyo Alphadom City
Construction of 2nd Office Building and Software Promotion Facility
A consortium consisting of Mirae Asset Financial Group and Samsung C&T has secured project financing (PF) funds worth 780 billion KRW to build NCSoft's second headquarters and an advanced software promotion facility in Pangyo, Seongnam City. Samsung C&T will undertake the construction, planning to complete a massive state-of-the-art complex facility by 2026.
According to the investment banking (IB) industry on the 24th, the Mirae Asset consortium received a PF loan of 780 billion KRW from a lending group composed of financial institutions including the Industrial Bank of Korea. The loan was divided into senior and subordinated tranches based on collateral and repayment priority, with 740 billion KRW in senior loans and 40 billion KRW in subordinated loans, recruiting lenders appropriate for each tranche. The loan maturity is 4 years and 6 months.
The Mirae Asset consortium plans to use the funds secured through the PF loan to build NCSoft's second headquarters and a large-scale software promotion facility on the site in Bundang purchased from Seongnam City last year. With a total project cost of about 2 trillion KRW including land acquisition costs, the plan is to construct a mixed-use office complex spanning from 9 basement floors to 14 above-ground floors, with a total floor area of 100,000 pyeong (approximately 330,578 square meters). Samsung C&T will participate as the construction company and begin groundbreaking in the second half of this year.
Perspective rendering of the Pangyo office complex facility being developed by the Mirae Asset consortium (not finalized).
Samsung C&T has provided a completion guarantee agreement for the PF loan. The completion deadline is set as either 44 months after the receipt of the construction commencement notification certificate or 53 months after the initial PF loan disbursement date. If the project is completed within the deadline but fails to obtain usage approval from the local government, Samsung C&T will bear all losses resulting from the failure to complete.
The consortium composed of NCSoft, Mirae Asset Global Investments, the Government Employees Pension Service, and Samsung C&T purchased the planned site for the Pangyo District Office from Seongnam City in 2021 for 837.7 billion KRW. The large-scale site covers 7,782 pyeong (approximately 25,720 square meters) at 641 Sampyeong-dong, Bundang-gu, Seongnam City, Gyeonggi Province. The land, previously used as a parking lot after the cancellation of the Pangyo district separation, is considered a prime site located between Pangyo Alpha Dome City and the First Pangyo Techno Valley and Alpha Dome City.
At the time, Seongnam City sold the site on the condition that about half of it would be developed into a software promotion facility. The plan is to develop a large-scale mixed-use office complex to create a massive 4th industrial revolution platform, thereby realizing advanced industry convergence and innovation. A consortium official stated, "Despite instability in the PF market, the project was successfully financed because it is promoted by a consortium of stable companies located in a prime Pangyo location," adding, "Once completed, it will become a new landmark in the Pangyo area."
However, NCSoft plans to construct the second headquarters using its own funds. The investment is expected to be similar to the consortium's borrowed amount, around 700 to 800 billion KRW. An NCSoft official said, "Although we participated in the land bid as a consortium, the other consortium members excluding NCSoft financed about half of the project costs through the PF loan," adding, "The project costs for the NCSoft headquarters portion will be covered with our own funds."
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