Development of Former Daewoong Pharmaceutical Company Housing Site... Hyundai Family 3rd Generation Jeong Daeseon, HN President, Participates in Project
Mirae Asset Securities Leads, Hyundai Construction Provides Credit Enhancement
The project financing (PF) for the development of the luxury residence ‘La Brue 27’ in Samseong-dong has been successfully secured. This achievement draws attention as it was completed successfully despite the high interest rates and the downturn in the real estate market, which have made new PF financing difficult. The expectation of successful sales was driven by the fact that the area around the development site is home to many business leaders, and the project is being promoted by the third generation of the Hyundai family, who possess extensive wealthy networks.
According to the investment banking (IB) industry, Goryeo Asset Development and Sigongan Networks (formerly Megatrend Partners) selected Mirae Asset Securities as the lead manager and completed the recruitment of PF investors for a total of 200 billion KRW. Goryeo Asset Development borrowed 107.6 billion KRW, and Sigongan Networks borrowed the remaining 89.4 billion KRW to be used for construction costs and other expenses. Mirae Asset Securities, as the PF lead manager, recruited PF investors (lenders) by dividing the loans into senior, mezzanine, and junior tranches based on repayment priority, secured by collateral.
The funds raised will be used to build the ultra-luxury hyper-end villa La Brue 27 on the former Daewoong Pharmaceutical company housing site located at 90-25, Samseong-dong, Gangnam-gu, Seoul. The project covers a total floor area of 22,525 square meters, consisting of two buildings with five basement floors and seven above-ground floors, comprising 27 households. Hyundai Engineering & Construction, the contractor, plans to start construction this month and complete the project by 2026.
Goryeo Asset Development and Sigongan Networks are primarily real estate development companies. Both companies have Kim Si-eun, born in 1993 and an inside director of Goryeo Asset Development, as the major shareholder, holding 84.15% and 99.8% of the shares in each company, respectively. Since 2020, they have been preparing the project by purchasing the land previously owned by the late Yoon Young-hwan, honorary chairman of Daewoong Group, and Daewoong Pharmaceutical.
Notably, Goryeo Asset Development also has partial shares held by Chung Dae-sun, president of HN Group and third generation of the broader Hyundai family (9.90% stake), and Lee Hoo-won, chairman of HN Group and former president of Shinhan Financial Investment (4.95%). The company gained attention last year when it acquired the Golden Bay CC, a public golf course in Taean, Chungcheongnam-do, from Hanwha Hotels & Resorts for 200 billion KRW.
Real estate experts cite excellent project feasibility as the reason for successfully securing development funds amid an extremely contracted PF market. The Samseong-dong project site is a prime location in Gangnam, Seoul, with prestigious school districts and top-tier transportation infrastructure. It is within walking distance of COEX and Gangnam Hyundai Department Store, and the Hyundai Motor Group’s new Global Business Center (GBC) headquarters under construction is also nearby.
A PF industry insider said, "In the case of luxury residences, there is steady demand for sales regardless of the real estate market," adding, "Especially since the project is promoted by business leaders with extensive wealthy networks and former financial company executives, the sales are expected to be successful." The insider also noted, "The fact that Hyundai Engineering & Construction, a major construction company, provided credit support for the PF loan to enhance repayment stability can also be cited as a reason for the successful PF."
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