Samsung C&T secured the construction rights for the redevelopment of Hanam District 4 in the Yongsan District of Seoul, surpassing the second-ranked Hyundai E&C.
The Hanam 4 Redevelopment Promotion District Housing Redevelopment Association noted on the 18th that Samsung C&T was finally selected as the contractor during a general meeting held at the Itaewon Church in Yongsan District, Seoul. On that day, 1,163 members participated in the voting, excluding 16 invalid ballots, with 1,026 members (88.2%) casting votes. Samsung C&T received 675 votes (65.8%) as number 1, while Hyundai E&C received 335 votes (32.7%), giving Samsung C&T a lead of more than double.
Hanam District 4 is a large-scale project to build a total of 51 buildings with 2,331 dwellings by redeveloping the Bogwang-dong area in Yongsan District, Seoul, with the project cost estimated at around 1.6 trillion won. In particular, the project site is located in the center of the Hanam New Town redevelopment area and is regarded as having the best business potential due to the large amount of units available for general sale.
Samsung C&T attracted attention by proposing unprecedented financial conditions rarely seen in recent maintenance projects since the early stages of the bidding process. They suggested deferring member repayment contributions for up to four years and guaranteeing a minimum relocation cost of 1.2 billion won. To alleviate the burden of construction cost increases, they proposed to absorb a maximum of 31.4 billion won of the construction cost increase due to inflation before construction starts and also included conditions for reflecting an additional construction cost increase of 65 billion won. They announced plans to secure the total project cost of 3 trillion won at a fixed interest rate of the Certificate of Deposit (CD) rate plus 0.78%.
In addition, they stated they would build a total sale area of 19,707 pyeong (approximately 65,033 square meters), increasing it by 795 pyeong (approximately 2,624 square meters) compared to Hyundai E&C, and would provide a solution for a fair sale price to guarantee additional sales revenue for the members. Overall, Samsung C&T claims that each member household is guaranteed at least 250 million won and a total of 290 billion won in additional profits compared to competitors.
Samsung C&T's proposal to design the complex named 'Raemian Glow Hills Hanam' to ensure that all members have a view of the Han River has also positively affected their appeal. There is an analysis suggesting that the significant gap in votes might have widened in this regard compared to Hyundai E&C, which could not promise 100% Han River views to its members.
This bidding contest was interpreted as a competition between Oh Se-cheol, the CEO of Samsung C&T's construction division, and Lee Han-woo, the CEO of Hyundai E&C, both of whom are recognized in the housing sector and alumni of Seoul National University’s Department of Architecture. Both CEOs visited the site and made efforts to secure the contract. Ultimately, Samsung C&T won the construction rights by a significant margin of 340 votes and is now in a position to advance to secure major landmark housing projects in Seoul, including the much-coveted Apgujeong District 3 redevelopment project. Hyundai E&C, which failed to win the bid, has decided to abandon plans for the 'The H Town' project in District 4 following its previous success in District 3.