Taeyoung Construction Participates in Meritz Securities Consortium, Wins Baekhyeon MICE Urban Development Project

20,6350㎡ Site in Jeongja-dong, Bundang
Development of Exhibition Convention Center, Mixed-Use Office Facilities, Tourism and Leisure, and Accommodation Facilities

The Meritz Securities consortium, which includes Taeyoung Construction, has been selected as the preferred private participant for the 'Baekhyeon MICE Urban Development Project' in Baekhyeon District, Bundang, Seongnam City, Gyeonggi Province.

Perspective view of Baekhyun MICE Urban Development Project (Provided by Taeyoung Construction)

The Baekhyeon MICE Urban Development Project, promoted by Seongnam Urban Development Corporation, is a project to build an exhibition convention center, mixed-use office facilities, tourism and accommodation facilities on a 206,350㎡ site in Jeongja-dong, considered the last prime development site in Bundang. The project site is 1.4 times the size of Gangnam COEX and 2.5 times that of Magok MICE, with a total project cost of approximately 6.3 trillion KRW.

Seongnam Urban Development Corporation plans to enter into a project agreement in July after a negotiation period of up to 60 days with the Meritz Securities consortium, which was selected as the preferred negotiator, and to apply for designation as the project implementer and approval of the implementation plan in December.

The Meritz Securities consortium is led by Meritz Securities and includes Samsung Securities, DL E&C, Taeyoung Construction, Uniquest, CS Property, and JS Industrial Development. The consortium aims to start construction in 2025 and complete the project by the second half of 2030.

The total construction cost amounts to 3.5 trillion KRW, of which DL E&C secured 2.0718 trillion KRW, corresponding to a 60% stake, and Taeyoung Construction secured 1.0359 trillion KRW, corresponding to a 30% stake.

The Baekhyeon MICE Urban Development Project will be promoted in the form of a corporation funded by Seongnam Urban Development Corporation and private participants purchasing the land from the city in its current state, then constructing mixed-use office facilities and hotels to attract Seongnam City's strategic projects. The profits generated will be used to install social overhead capital (SOC) such as a convention center with a total floor area of 100,000㎡, public support facilities of 60,000㎡, and a pedestrian bridge connecting to Sunae Station, which will be donated to the city. The convention center will be operated by the private sector for five years after donation as a mandatory obligation.

Regarding public contribution evaluation, the Meritz Securities consortium proposed a public contribution return plan amounting to approximately 1.5 trillion KRW, including 750 billion KRW for the convention creation project cost, which is about twice the amount compared to the public offering guidelines, 600 billion KRW for infrastructure projects such as parks, connecting bridges, and underground roads, and 150 billion KRW as project management fees to Seongnam Urban Development Corporation.

Additionally, the consortium boldly gave up residential officetels, which typically guarantee high returns to private developers, and proposed 100% office spaces only. They also aimed to improve the residential environment and commuting stability for local youth and newlyweds by relocating rental housing.

To ensure the successful operation of Baekhyeon MICE, the consortium will collaborate with global-level partners. ASM Global, which operates and manages convention centers about 40 times the size of Korea's largest operator KINTEX, and Deutsche Messe, which owns and operates the Hannover Exhibition Grounds in Germany, have expressed their intention to participate in convention operations. American company Turnberry, with experience in planning Yeouido IFC Mall and Starfield, will participate in commercial facility planning and operations, and Hyatt will participate in hotel operations linked to the convention center.

The office facilities will not be simple office spaces but will be developed as a future technology testbed and a space where tenant companies can grow together.