DL E&C and Samsung C&T Consortium Secures 1.9 Trillion Won Jeungsan 4 District Construction Contract [Real Estate AtoZ]

Final Approval with 95% Voter Support
Large-Scale Complex with Up to 42 Floors and Around 3,500 Units
"DIATUS" Proposed as Name, Meaning "Seat of the King"
Annual Urban Redevelopment Orders Reach 3 Trillion and 9 Trillion Won, Respectively

The consortium of DL E&C and the construction division of Samsung C&T has secured the construction contract for the urban public housing complex project in Jeungsan 4 District, Eunpyeong-gu, Seoul, valued at 1.9435 trillion won. This year, the total value of urban redevelopment projects won by the two construction companies has increased to approximately 3 trillion won and 9 trillion won, respectively.

Perspective view of the urban public housing complex project in Jeungsan 4 District, Eunpyeong-gu, Seoul. Korea Land and Housing Corporation.

According to the redevelopment industry on November 30, the residents' representative meeting for the Jeungsan 4 District urban complex project held a general assembly the previous day to select the construction company, ultimately choosing the DL E&C and Samsung C&T consortium. The consortium secured its participation in the project with the approval of about 95% of all voters.

The project is being implemented by Korea Land and Housing Corporation (LH) and will be carried out on a site of approximately 166,531 square meters at 205-33 Jeungsan-dong, Eunpyeong-gu, Seoul. The plan is to replace 1,956 aging homes with a public housing complex consisting of around 3,500 units in buildings up to 42 stories high. The consortium has proposed the name "DIATUS," derived from Latin meaning "the seat of the king," for the complex.

Previously, after receiving project approval from the Seoul Metropolitan Government at the end of last year, LH conducted two rounds of bidding for construction companies. During this process, only the DL E&C and Samsung C&T consortium submitted an application, designating them as the preferred negotiation partner. With the approval at the general assembly, they have now officially secured the construction contract.

Of the total construction cost of 1.9435 trillion won, DL E&C's share is 53%, while Samsung C&T's share is 47%. Based on equity, the construction cost is estimated at about 1.03 trillion won for DL E&C and about 913.4 billion won for Samsung C&T. With this contract, Samsung C&T's cumulative urban redevelopment project orders for the year have surpassed 9 trillion won, reaching approximately 9.2622 trillion won. DL E&C's cumulative orders have increased to about 3.713 trillion won.

Meanwhile, LH and the consortium plan to sign a business agreement and begin preparations for relocation and groundbreaking.