HDC Hyundai Development Company Secures 1.7 Trillion KRW in Q1 Orders... Enhancing Corporate Value Through Large-Scale Development Projects

Achieved 35% of Annual Order Target in Q1
13,000 Households Scheduled for Sale This Year
4.5 Trillion KRW Construction to Start in Second Half at Gwangwoon University Station Area

HDC Hyundai Development Company achieved order performance worth approximately 1.7 trillion KRW in the first quarter of this year alone. Based on stable order and sales results, it is expected to accelerate efforts to enhance corporate value by making large-scale development and self-driven projects, such as the Gwangwoon University Station area development project, new growth engines.

HDC Hyundai Development Company plans to begin construction this year on the Gwangwoon University Station Complex Development Project, valued at approximately 4.5 trillion KRW, on about 150,000㎡ of railway facility land around Gwangwoon University Station in Wolgye-dong, Nowon-gu, Seoul.

According to HDC Hyundai Development Company on the 28th, the new orders in the first quarter of this year recorded 1.7206 trillion KRW. This accounts for more than 35% of the annual total order plan (4.8529 trillion KRW) announced at the beginning of the year. In the second quarter, they secured an urban maintenance project worth 257.3 billion KRW, the redevelopment project of Daejeon Gayang-dong District 1.

The supply volume in the first half of this year reaches about 3,600 households across 8 complexes. The first priority average competition rate for Seodaemun Central I-Park recorded 7.3 to 1. At Daegu Beomeo I-Park, 1,370 people flocked to purchase 82 households, recording a competition rate of 16.7 to 1, and it was sold out during the preliminary winner contract period. In the second half of the year, large-scale complexes with more than 1,000 households, such as the Gwangwoon University Station area development project and Cheonan Seongseong Districts 5 and 6, will be supplied. The annual supply target volume is a total of about 13,000 households.

In the second half of this year, construction will begin on the Gwangwoon University Station area development project, worth 4.5 trillion KRW. The Gwangwoon University Station area development project will proceed in a mixed form of development and operation. HDC Hyundai Development Company will secure large-scale operating assets such as rental housing, commercial facilities, offices, and hotels. The Gwangwoon University Station area development project passed the Seoul City architectural review on the 25th of last month, and the project promotion will be in full swing.

Not stopping there, complex development projects in Seoul and the metropolitan area, such as the Yongsan Railroad Hospital site, Jamsil Sports & MICE complex, Cheongna Medical Complex Town, and Gongneung Station area development project, are lined up. Large-scale self-driven development projects are evaluated as new growth engines for HDC Hyundai Development Company.

With favorable sales performance and smooth progress in development projects, credit rating agencies have also upgraded their credit rating outlooks. Recently, NICE Credit Rating changed the long-term credit rating outlook of HDC Hyundai Development Company and HDC Co., Ltd. from ‘negative’ to ‘stable.’ Korea Ratings adjusted the outlook for HDC Hyundai Development Company’s unsecured bond rating from ‘negative’ to ‘stable.’

HDC Hyundai Development Company is actively managing contingent liabilities and working to improve financial indicators by reducing net borrowings. Among contingent liabilities related to contract projects worth about 1.5 trillion KRW, the amount for projects not yet started is 349.5 billion KRW. Most of these are expected to convert to main project financing (PF) after this year’s sales. The 800 billion KRW worth of maintenance project PF guarantees are all scheduled to be converted to main PF and are expected to start construction within the year.

HDC Hyundai Development Company explained, "Net borrowings are expected to decrease to 500 billion KRW through the recovery of outstanding receivables by the end of the year, and financial soundness will be further strengthened."