Koramco REITs Management and Trust announced on the 24th that it has signed a business agreement with the trust method promotion committee for the redevelopment of the Daewoo Marina apartments in Haeundae, Busan.
The business agreement ceremony held at the conference room of the Koramco REITs Management and Trust headquarters in Samseong-dong, Gangnam-gu, Seoul, was attended by more than 20 stakeholders, including Park Woo-seok, chair of the trust method promotion committee, and Jang Soon-seok, head of the maintenance project division at Koramco REITs Management and Trust.
Koramco REITs Management and Trust plans to hold a full-scale briefing session on the trust method redevelopment project targeting apartment and commercial building owners along with this business agreement. This is a measure to ascertain the agreement of owners on the trust method promotion before collecting consent for the designation of the project implementer.
The Daewoo Marina apartments are a large complex located near 1388 Woon-dong, Haeundae-gu, Busan, consisting of a total of 1,263 units and reaching 35 years since completion this year (completed in 1991). The apartments are situated in a prime location just 50 meters from Exit 1 of Busan Subway Line 2 and face Marine City across the street. Nearby attractions include BEXCO, Centum City, and Dongbaek Island Nurimaru.
Koramco REITs Management and Trust intends to increase the floor area ratio and restructure into various unit sizes in line with the owners' demands through a change in the maintenance plan after designating the project implementer. In particular, to enhance the product's marketability considering regional characteristics, the plan is to widen the distance between buildings with high-rise designs, improving the livability of the complex.
The trust method maintenance project is a type of maintenance project in which a real estate trust company with expertise and public accountability leads the implementation of reconstruction and redevelopment. The company noted that this method can prevent project delays caused by internal conflicts within the association and allows for smooth financing through the trust company's own funds or credit enhancement, enabling a quick project progression.
Koramco REITs Management and Trust is a pioneer trust company that successfully executed the trust agency style redevelopment for the first time in the country in Ho-gye-dong, Anyang City. It currently holds completion results for five trust method maintenance projects in places such as Banghwa-dong, Seoul, Juan-dong, Incheon, and Mojong-dong, Asan. Only two trust companies, Korea Land Trust and Koramco REITs Management and Trust, have completion records for more than five projects.
Jang Soon-seok, head of Koramco REITs Management and Trust, stated, "Koramco already has extensive experience in creating many successful cases of trust method maintenance projects, possessing richer experience than any other trust company in the country," and added, "The maintenance project requires speed, so we will respond to the expectations of the owners of the Daewoo Marina apartments 1 and 2 with transparent and prompt project progress."