"Over 20 in Matching Red Ties"...Builders Go All In on Apgujeong, the Biggest Redevelopment Prize [Real Estate AtoZ]

7 Trillion Won Apgujeong 3 District Bidding War
Over 20 Hyundai Construction Employees On Site To Show "Determination"
Major Players Such As Hyundai, Samsung C&T, And DL E&C Flock To 5 District As Well

Hyundai Engineering & Construction employees attended the Apgujeong 3 District association's on-site briefing and posed for a group photo. Photo by Bu Aeri

At around 3:00 p.m. on the 23rd, in front of the Apgujeong 3 District association office in Gangnam-gu, Seoul, more than 20 Hyundai Construction employees wearing matching red neckties packed the area. The employees strengthened their resolve by hanging a banner that read, "Hyundai Construction will complete Apgujeong Hyundai."

As contractors for the Apgujeong districts in Gangnam-gu, Seoul, an area regarded as the number one redevelopment zone in Korea, are being selected simultaneously, the outline of the order-intake competition among major construction companies is gradually coming into view. In particular, Apgujeong 3 District is the largest within the Apgujeong area. Including Hyundai Apartments Phases 1 to 7 and Phases 10, 13, and 14, it will comprise 5,175 households, with total construction costs reaching about 7 trillion won, prompting large construction companies to show strong determination to win the project.

The most aggressive bidder is Hyundai Construction. Having already won Apgujeong 2 District, Hyundai Construction is going all out in this bidding war, as securing 3 District as well would further strengthen the "Apgujeong Hyundai" brand position. Hyundai Construction has also brought in the U.S. architectural firm RAMSA (Robert A.M. Stern Architects), which designed 220 Central Park South in New York. Three RAMSA architects, Daniel Lobitz, Gemma Kim, and Chen-Huan Liao, also attended the on-site briefing in person. Daniel Lobitz, a partner at RAMSA, said, "Our goal is to make Apgujeong 3 District the most beautiful and luxurious residential complex in Seoul."

In addition to Hyundai Construction, DL E&C, SK Ecoplant, POSCO E&C, Kumho Construction, Jeil Construction, Daebang Construction, HDC Hyundai Development Company, and Lotte Construction attended the on-site briefing. Following the briefing, the Apgujeong 3 District association plans to close bidding on April 10 and hold a general meeting to select the contractor on May 25. The bid deposit totals 200 billion won, consisting of 100 billion won in cash and 100 billion won in performance bond insurance.

Major construction companies flock to Apgujeong 5 District as well

At the on-site briefing for Apgujeong 5 District in Gangnam-gu, Seoul, held later that afternoon, five DL E&C employees were the first to arrive. Five employees from Samsung C&T followed. Hyundai Construction employees attended in coordinated outfits as a group. At the Apgujeong 5 District briefing, a total of eight companies participated, including these three as well as POSCO E&C, Hanwha Construction, Hyundai Construction, HDC Hyundai Development Company, and Jeil Construction.

Apgujeong 5 District is located around 490 Apgujeong-dong, Gangnam-gu, Seoul, and includes Hanyang Apartments Phases 1 and 2. It will be developed into a large complex consisting of 8 buildings with 5 basement levels and 68 above-ground floors, totaling 1,397 households. The construction cost proposed by the association is 1.496 trillion won.

Hyundai Construction is focusing on Apgujeong 5 District following Apgujeong 3 District. Building on the greeting event they held on the morning commute on the 11th, the company is emphasizing its plan to elevate the status of the Apgujeong complex to a world-class level in partnership with top-tier global design firms. Hyundai Construction presented a vision to create a premium residential complex that maximizes views of the Han River and harmonizes with the urban environment, in collaboration with RSHP, founded by 2007 Pritzker Prize laureate Richard Rogers.

DL E&C is forming a two-way race with Hyundai Construction. DL E&C is signaling its intent to participate by putting forward its high-end brand "Acro." Following a greeting event with executives and employees on the 10th, DL E&C announced that it will present a differentiated design in partnership with Arcadis, a global architecture, engineering, and consulting group, and Arup, a super-high-rise structural engineering firm that has worked on projects such as Marina Bay Sands.

Samsung C&T has shown its intent by attending the Apgujeong 5 District on-site briefing after having already entered the race for Apgujeong 4 District. GS Construction, which had been expected to create a three-way competition with Hyundai Construction and DL E&C, made its absence official by not attending the briefing. Since GS Construction submitted a sole bid in the contractor selection tender for the redevelopment of Seongsu Strategic Maintenance Zone District 1 (Seongsu 1 District) in Seongdong-gu, Seoul, it appears likely to concentrate its business resources there.

The bidding deadline for Apgujeong 5 District is April 10, and the general meeting to select the contractor is scheduled for May 30. The bid deposit totals 80 billion won, consisting of 40 billion won in cash and 40 billion won in performance bond insurance. The Apgujeong 5 District association said, "After selecting the contractor, we plan to receive a completion guarantee letter and aim to sign the construction contract within March," adding, "We intend to submit an application for the integrated review by the Seoul Metropolitan Government within this year."