"Sindorim Has Potential to Surpass Seongsu-dong... Starting with D-Cube"

Interview with Kwon Soon-il, Head of Space Business
Aegis Asset Management "Benchmarking offices of US tech companies like Nvidia"
"Building local consensus is priority... Will pause usage change procedures and gather opinions first"

"Sindorim is the Seoul entry point of the Seoul Metropolitan Area Express Train (GTX) B line and a junction of Subway Lines 1 and 2. Like Pangyo or Seongsu, it is a region with great growth potential as an emerging business district. Considering the transformation process of Seongsu-dong, one of Seoul's most creative neighborhoods, Sindorim meets the conditions of the 'Next Seongsu.' If ‘large plate’ type offices preferred by high-tech companies are created, it is expected to generate many high value-added jobs."

On the 10th, Kwon Soon-il, Head of Space Business at Aegis Asset Management, said in an interview with Asia Economy, "I fully empathize with the concerns of local residents regarding the withdrawal of Hyundai Department Store from D-Cube City." He added, "The department store must have provided benefits to local residents," and explained, "We are exploring ways to enhance both resident benefits and regional value." He also promised, "We will actively listen to the opinions of local residents."

Kwon said, "Near D-Cube City, there are Lotte Department Store Yeongdeungpo Branch and Shinsegae Department Store Times Square Branch, and The Hyundai in Yeouido has also opened," adding, "Other alternatives such as complex shopping mall tenants are needed besides department stores."

Regarding rumors that Aegis Asset Management demanded high rents after purchase, forcing the department store out, Kwon emphasized that this is groundless. He explained, "Hyundai Department Store did not request negotiations for lease extension," and "It was mutually agreed to terminate the lease contract in June next year."

Sindorim, Rich Potential with Excellent Transportation Network, Residential Hinterland, and Floating Population

Aegis Asset Management judged that although the withdrawal of Hyundai Department Store and the introduction of large plate-type offices and complex facilities may reduce convenience for nearby residents, the regional value is likely to increase significantly. Kwon explained, "There are only three GTX stations that directly connect to Line 2, which circulates through downtown Seoul: Sindorim Station, Samseong Station, and Wangsimni Station," adding, "More companies are gradually moving out of Gangnam along Line 2."

He said, "The space where the department store was located can be developed into ‘large plate’ type offices preferred by high-tech companies," adding, "It will be a space where more than 500 people work on a single floor." He also added, "Amazon in the U.S. purchased the Lord & Taylor department store in Manhattan, New York, and after major renovations, is using it as an office."

Kwon, who personally toured Google’s headquarters ‘Googleplex’ and Nvidia’s headquarters ‘Endeavor’ and ‘Voyager,’ expressed confidence in the future of offices. He introduced, "Global companies dominating the world invest trillions of won to create headquarters buildings that enhance communication functions among members," and "There is a trend to prefer 'ground-scraper' offices with horizontally vast floor plans and openness that enable diverse collaboration and creative thinking."

He said, "Once results come out, it will be possible to alleviate the concerns of local residents," and added, "The factors that create high regional value in Seoul are ▲Han River ▲Gangnam ▲Education." Since Gangnam and education are both related to high value-added jobs, he predicted that attracting high-tech companies will have a significant effect on increasing regional value.

Kwon explained, "High value-added jobs improve the image of the region and circulate money within the local commercial district," adding, "Cities like New York and San Francisco in the U.S. improve local infrastructure to attract companies."

Aegis Asset Management plans to invest about 200 billion KRW of the total project cost of 650 billion KRW in remodeling to promote mixed-use development of office facilities and retail. They have planned to remodel 'Sindorim D-Cube City' together with Gensler, a world-renowned design firm. Gensler is the largest architectural design company based in the U.S. and has experience transforming retail facilities in North America into offices, thereby increasing regional value.

Aegis Asset Management expects the renewed D-Cube City to absorb some office demand from Gangnam area as well as life science companies in Songdo connected to GTX. Considering the aging offices and shortage of rental spaces in Gangnam, Sindorim, with its excellent transportation convenience, could emerge as an alternative.

While undertaking major renovations, Aegis Asset Management will also maintain retail spaces for the benefit of local residents. Of the total gross floor area of about 35,000 pyeong, the size of the retail facilities under consideration is about 16,000 pyeong. Kwon promised, "We are carefully analyzing which facilities residents of the apartments frequently use and prefer within Hyundai Department Store," adding, "Based on the analyzed data, we will prioritize attracting facilities that increase resident benefits in the retail space on the lower floors." He also said, "It is expected to enhance convenience and usage for both office tenants and local residents."

Lastly, he addressed unfounded rumors circulating among residents regarding the major renovation of D-Cube City. Kwon emphasized, "The rumor that a shared laboratory for life science companies will be introduced after transforming into office space is not true," and "There are no plans to attract facilities such as research labs (Wet-Labs) that handle chemicals, pathogens, or harmful gases, which residents are worried about."

Kwon is an expert who gained experience in hotel and office complex development while working at KT Group’s real estate development company kt estate and SK Group’s specialized developer SK D&D. He participated in the development of Andaz Hotel in Sinsa-dong, Gangnam, Sofitel office complex in Jamsil, Novotel hotel and residence in Dongdaemun, and Grand Chosun Jeju Hotel development projects. He is also promoting the Millennium Hilton Hotel office development and Seoripul Park Intelligence Service site office development projects.