Gwangju Jungang Park Zone 1 'Large Complex Landmark' Development Accelerates

Signing of Main PF Loan Agreement Worth 995 Billion Won

Bitgoeul Central Park Development Co., Ltd. has secured project financing (PF) worth 995 billion KRW for the 'Central Park District 1 Private Park Special Project' promoted by Gwangju Metropolitan City.

Accordingly, the development of Central Park District 1, the largest private park in Gwangju currently underway, is expected to accelerate along with the construction of a large apartment complex.

Bitgoeul Central Park Development Co., Ltd., the private project operator for Gwangju Central Park District 1, announced on the 27th that it has signed a PF loan agreement worth 995 billion KRW for the 'Central Park District 1 Non-Park Facilities.'

This PF involved Hub Asset Management as the lead underwriter, along with Hana Bank and Gwangju Bank as joint underwriters and major lenders. Through this PF agreement, the public nature and stability of the 'Central Park District 1 Private Park Special Project' have been further strengthened.

The Gwangju 'Central Park District 1 Private Park Special Project' is a project to build park facilities and non-park facilities on a 2,435,027㎡ site spanning Geumho-dong, Hwajeong-dong, and Pungam-dong in Seo-gu, Gwangju Metropolitan City. On the non-park facility site, a total of 2,772 apartment units will be constructed across 39 buildings ranging from three basement floors to 28 above-ground floors.

Through this PF agreement, Lotte Construction has also reduced the risk of contingent liabilities. Previously, Lotte Construction signed a capital supplementation agreement worth 700 billion KRW with the special purpose company (SPC) related to Gwangju Central Park District 1 Private Park.

In April 2021, Lotte Construction was selected as the contractor for the 'Central Park District 1 Non-Park Facilities.' Currently, the project is on the verge of groundbreaking after receiving housing project plan approval from Gwangju City.

A Lotte Construction official said, "With this PF financing, the Central Park District 1 Non-Park Facilities project has not only gotten on track, but it also provided an opportunity to strengthen Lotte Construction’s financial stability. Following the successful conversion of the main PF worth 529.5 billion KRW in the first half of this year, we have achieved significant results consecutively, and we expect gradual growth such as an improvement in the company’s credit rating going forward."

A representative of Bitgoeul Central Park Co., Ltd. stated, "This PF agreement is particularly meaningful as it marks the fruition of Gwangju City's long-cherished project that had been stalled for 45 years since the area was designated as park facilities in 1975. We hope to provide an optimal resting space for 1.4 million Gwangju citizens and that the large apartment complex constructed by Lotte Construction will emerge as a landmark representing Gwangju."