Interest Grows Over Hyundai Engineering & Construction vs. Samsung C&T Rematch
Site Briefing on the 26th; Bidding Deposit Alone Set at 100 Billion Won
Apgujeong District 2 in Gangnam-gu, Seoul is launching a contractor selection process with a project budget of approximately 2.7 trillion won. There is growing attention on whether this will lead to a direct competition between Hyundai Engineering & Construction and Samsung C&T, both of which have strongly expressed their intention to win the Apgujeong project.
On June 18, the reconstruction association for the Apgujeong Apartment District Special Planning Zone 2 announced a tender for contractor selection. The site briefing session will be held on June 26.
The Apgujeong District 2 project involves constructing 14 apartment buildings with five basement levels and up to 65 above-ground floors, totaling 2,571 apartment units and various ancillary welfare facilities in the area of 434 Apgujeong-dong, Gangnam-gu, Seoul.
The deadline for submitting proposals for the Apgujeong District 2 tender is August 11. The construction cost is set at 2.7488 trillion won (excluding VAT), with the construction cost per pyeong (3.3 square meters) set at 11.5 million won. The association has stipulated that joint contracts are not permitted.
In addition to the large project budget, the deposit required from construction companies to participate in the bidding is also substantial. The association requires that a bidding deposit of 100 billion won be paid in full in cash before submitting the proposal as a qualification for participation.
Joint briefing sessions will be held three times, on September 5, 18, and 27. If the bidding proceeds without any failures, the general meeting to select the contractor is expected to be held at the end of September.
Major domestic construction companies are showing interest in Apgujeong District 2. There is a high possibility that the "rematch" between Samsung C&T and Hyundai Engineering & Construction, the top two companies in the construction industry, will take place.
Hyundai Engineering & Construction has proposed developing a passage connecting Apgujeong District 2 with the Hyundai Department Store main branch and Apgujeong Station on Subway Line 3. The company has also signed a memorandum of understanding with Seoul Hyundai Academy, which operates Hyundai High School, to develop idle land into educational facilities.
Samsung C&T has announced plans to collaborate with Foster and Partners, the renowned British architectural firm led by Norman Foster, for the design of Apgujeong District 2.
Apgujeong District 2 consists of a total of 1,924 units in the Shinhyundai (9th, 11th, and 12th phases) apartments, which were completed in 1982. In November last year, a revision to the redevelopment plan was approved by the Seoul City Urban Planning Committee.
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