Daewoo Follows POSCO E&C in Withdrawing
Just Before October Start of Residential-Commercial Complex Construction
Daewoo Engineering & Construction has decided to withdraw from the construction contract for the Gwangju Champions City mixed-use development project. With Daewoo Engineering & Construction following POSCO E&C in abandoning the project just before construction was set to begin, delays in the project are now expected.
On September 30, the Champions City Mixed-Use Development Project Financing Vehicle (PFV) announced that Daewoo Engineering & Construction had verbally communicated its intention to halt negotiations for the residential construction contract.
It is reported that Daewoo Engineering & Construction felt significant pressure about undertaking such a large-scale development project alone.
The Champions City project involves the construction of a total of 4,315 residential units, as well as office and commercial facilities, a luxury hotel, and a historical park, on a 298,000-square-meter site located at 100-1 Im-dong, Buk-gu, Gwangju.
Hyundai Department Store Group plans to build 'The Hyundai Gwangju,' which will be 1.5 times the size of The Hyundai Seoul, and the residential-commercial complex was originally planned to be constructed by POSCO E&C and Daewoo Engineering & Construction.
Initially, construction was scheduled to begin next month with the goal of completing the project by the end of 2029, and the first phase of sales for Complex 2 (3,216 units) was to be launched. However, the developer now plans to proceed with selecting a new construction company.
Earlier this month, POSCO E&C also withdrew from the project, citing unfavorable terms in the construction contract. On September 17, POSCO E&C announced that final agreement could not be reached with the client during contract negotiations, and thus it would forfeit the construction contract.
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