Briefing Session Held for All Employees
Proposes Construction Cost 1 Million Won Lower Than Association's Price
Groundbreaking Project Financing Interest Rate Also Offered
HDC Hyundai Development Company held a briefing session by gathering all employees to secure the contract for Yongsan Maintenance Depot Front Zone 1. This is interpreted as a determination to fully mobilize company resources for the 1 trillion won-scale redevelopment project that will become a landmark in Yongsan, Seoul. HDC Hyundai Development plans to lower the construction cost by 1 million won per pyeong (3.3㎡) and also propose a groundbreaking project financing interest rate.
Perspective view of 'The Line 330' in Yongsan Maintenance Depot Front Zone 1 proposed by HDC Hyundai Development Company. Photo by HDC Hyundai Development Company
According to the construction industry on the 18th, HDC Hyundai Development held a briefing session on the 16th for all employees to secure the contract for Yongsan Maintenance Depot Front Zone 1. Not only the bidding department but also related departments were fully mobilized.
According to the briefing, HDC Hyundai Development plans to propose a construction cost of 8.58 million won per 3.3㎡, which is 1 million won lower than the scheduled construction cost price (9.6 million won per 3.3㎡) presented by the association for Front Zone 1. The project financing interest rate is also planned to be set at the base rate (CD) + 0.1%. This strategy aims to maximize the development profits for association members by setting the lowest financing interest rate in the industry. HDC Hyundai Development promised to attract the Park Hyatt Hotel and also proposed programs that can coexist with Yongsan I'Park Mall.
HDC Hyundai Development named the apartment complex in Front Zone 1 "The Line 330." The name is inspired by the length (330m) of the sky community bridge, which will be built at a height of 74.5m. Unlike the Yongsan International Business District, where buildings up to 100 floors high will be constructed, a horizontally long sky bridge will be erected. This will be made into a symbol of the new landmark. They also proposed a community space where residents can enjoy a 360-degree view of the Han River from 115m above ground. Innovative floor plans will be applied so that all association members’ households can have a view of the Han River, and eight themed gardens will be created within the complex. The commercial facilities will be designed as an open street mall on the ground level.
HDC Hyundai Development is increasing the future value of Front Zone 1 by "connecting" various projects within Yongsan. They are currently developing the Yongsan I'Park Mall, where their headquarters is located, the underground development of the park in front of Yongsan Station, and the Yongsan Railroad Hospital site, and by securing the contract for Front Zone 1, they will create the "Yongsan HDC Town."
An HDC Hyundai Development official explained, "We plan to propose focusing on future development value by linking various projects in Yongsan," adding, "We focused on enhancing the value of the reconstruction complex through the complex development that we excel at."
Perspective view of Yongsan Maintenance Depot Front Zone 1 proposed by POSCO E&C. Provided by POSCO E&C
Posco E&C also entered the bidding competition for Front Zone 1. Posco E&C proposed a total construction cost of 909.944 billion won, significantly lower than the scheduled price of 955.7 billion won at the time of bidding. They also offered to defer the construction cost inflation for 20 months to reduce the risk of construction cost fluctuations. They promised an LTV of 160% and responsible financing of 4 trillion won for the project cost. Their design plan included securing 100% Han River views for association members and creating three sky communities.
The redevelopment of Yongsan Maintenance Depot Front Zone 1 is a project to build 777 apartment units and 894 officetel units in 12 buildings ranging from 6 basement floors to 38 above-ground floors on the site at 40-641 Hangang-ro 3-ga, Yongsan-gu. It also includes sales, neighborhood living facilities, and office facilities. The total construction cost is 955.7 billion won, with a construction cost of 9.6 million won per 3.3㎡. The Front Zone 1 association plans to hold a joint briefing session at the end of next month and hold a general meeting in June to select the final construction company.
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