Hyundai Engineering & Construction Becomes Top Urban Redevelopment Contractor by Winning Apgujeong District 2 Project [Real Estate AtoZ]

Rebuilding 1,924 Units into 2,571
Project Valued at 2.75 Trillion Won
Overwhelming 90% Approval at Association Meeting
Unprecedented Terms, Including Four-Year Grace Period for Contributions
Cumulative Orders Surpass 8.3 Trillion Won
Now No

Hyundai Engineering & Construction has been officially selected as the contractor for the reconstruction project of Apgujeong District 2 in Gangnam-gu, Seoul, a project valued at approximately 2.7488 trillion won. Hyundai Engineering & Construction has once again demonstrated its strength in the bidding war for major reconstruction projects in the Gangnam area.

Apgujeong Hyundai Apartment. Photo by Hyunmin Kim kimhyun81@

According to the maintenance industry on September 28, at the general meeting of the Apgujeong District 2 Reconstruction Association held the previous day at Kwanglim Church in Sinsa-dong, Gangnam-gu, Seoul, 1,286 out of 1,431 participating association members (about 90%) voted in favor of Hyundai Engineering & Construction as the contractor, passing the agenda. There were 91 votes against, and 54 abstentions or invalid votes.

Hyundai Engineering & Construction had previously participated as the sole bidder in two rounds of contractor selection and was designated as the preferred negotiation partner under the Urban and Residential Environment Improvement Act. According to the law, if the same contractor is the sole bidder for two consecutive rounds, the association may enter into a private contract with the contractor.

The Apgujeong District 2 project is a large-scale redevelopment to reconstruct the 1,924-unit Sinhyundai Apartments (phases 9, 11, and 12), completed in 1982, into a complex with up to 65 floors and 2,571 units. With its prime location along the Han River and the symbolic value of inheriting the prestigious 'Apgujeong Hyundai' brand, the project has attracted significant industry attention. The total construction cost is 11.5 million won per 3.3 square meters, with the overall project amounting to approximately 2.7488 trillion won.

Despite the somewhat unfavorable condition of being the sole bidder, Hyundai Engineering & Construction secured the trust of association members by offering exceptional financial terms, including a grace period of up to four years for member contributions after moving in. The company also garnered overwhelming support by presenting a blueprint emphasizing '100% Han River views' and proposing specialized design features.

Hyundai Engineering & Construction plans to accelerate efforts to secure additional districts within the Apgujeong area, starting with this successful bid. The Apgujeong area is divided into a total of six districts. Of these, the districts that include Hyundai Apartment complexes, where Hyundai Engineering & Construction has a competitive edge, are: District 2 (Sinhyundai phases 9, 11, and 12), District 3 (Hyundai phases 1-7, 10, 13, and 14, etc.), and District 4 (Hyundai phase 8, Hanyang phases 3, 4, and 6).

Meanwhile, by winning the Apgujeong District 2 reconstruction project, Hyundai Engineering & Construction has surpassed Samsung C&T’s construction division to become the top contractor in the urban redevelopment sector. Prior to securing Apgujeong District 2, Hyundai Engineering & Construction’s cumulative order volume stood at 5.5357 trillion won, ranking second in the redevelopment sector. With the addition of the Apgujeong District 2 project, the cumulative total rises to 8.2845 trillion won, surpassing Samsung C&T’s cumulative order volume of approximately 7 trillion won.