Stable 'Coventwalk Geomdan 1st Phase' Sale Secured Through Master Lease Introduction

- Developer as tenant eliminates vacancy burden
- Priced reasonably to maximize investment returns

The commercial facility 'Covent Walk Geomdan Phase 1' is attracting investors' attention with its innovative sale price compared to surrounding stores and a master lease guarantee for all units.

Covent Walk Geomdan Phase 1, supplied by Geumgang Housing in Geomdan New Town RC3 Block, is a large commercial facility consisting of 82 units on the first floor and 55 units on the second floor, totaling 137 units. It is the commercial facility of the residential-commercial complex 'Geomdan Station Geumgang Penterium The Siglo Phase 1,' which set a record for the highest competition rate in Geomdan New Town at up to 57 to 1 during the sale. It benefits from the opening of Station 101 (scheduled for 2025), surrounding station area development projects, and the halo effect of the legal town.

Covent Walk Geomdan Phase 1 has set a reasonable sale price and introduced a 'master lease system' for all units to reduce the burden on buyers while providing stable rental income.

The master lease system is a method where the developer (real estate developer) becomes the tenant and systematically executes a strategic leasing plan. Since the developer is responsible for attracting tenants and guaranteeing income during the contract period, there is no vacancy risk, and active marketing helps revitalize the entire commercial district.

In particular, it is convenient to attract major customer-attracting facilities or anchor tenants (key stores) that are difficult for individuals to bring in. By attracting major brands by industry through professional leasing agencies and composing a differentiated MD (merchandising), it continuously induces visits and secures stable income, making it advantageous for commercial district revitalization and highly regarded.

A representative commercial facility that introduced the master lease system is COEX Mall. At the end of 2015, COEX Mall had stores with vacancy rates over 70% and recorded losses, but after Shinsegae Property signed a master lease contract in 2016, it directly invested over 6 billion KRW to revitalize COEX Mall, opened the Starfield Library, and through continuous management, the sales of major brand stores in June showed double-digit growth compared to the previous month, and the vacancy rate decreased to less than 1%.

‘Dongtan Lake Como’ in Dongtan New Town and ‘Eliway Gwanggyo’ in Gwanggyo New Town also enhanced customer satisfaction by systematically composing MD by zone and floor through the master lease system, establishing themselves as representative commercial districts in their regions.

It also has abundant demand in the background. It benefits from fixed demand from 1,033 households of Geomdan New Town Geumgang Penterium The Siglo Phases 1 and 2 residents, about 10,000 households within a 10-minute walking radius, and approximately 43,000 households in the surrounding Geomdan New Town and Wondang District.

Furthermore, it is located in the central area of the first phase of Geomdan New Town, the closest to Seoul, allowing direct benefits from abundant infrastructure and development prospects, giving it excellent future value.

Covent Walk Geomdan Phase 1 is a station-area commercial facility adjacent to Station 101 (planned) on Incheon Subway Line 1. Extensions of Incheon Subway Line 2 (planned), Seoul Subway Line 5 (planned), and GTX-D line (planned) are also under consideration in Geomdan New Town, so various development prospects are planned.

Additionally, the legal town, where the Incheon District Court Northern Branch and the Incheon District Prosecutors' Office Northern Branch are planned to be newly established (scheduled), is close to the complex, allowing it to enjoy the halo effect of the surrounding commercial district.

A sales official said, “Covent Walk Geomdan Phase 1 is attracting attention as the first in Geomdan New Town to introduce the master lease system to secure stable profitability. The sale price is also set reasonably compared to nearby Geomdan New Town commercial facilities, maximizing investment returns.”

Covent Walk Geomdan Phase 1 operates a promotional center.