On the 9th, the Bangbae 15 reconstruction association in the Bangbae-dong area of Seocho-gu, Seoul, will close bidding for construction company selection. The construction industry expects POSCO Engineering & Construction to win the contract since major competing construction companies are not expected to participate in the bidding, increasing the likelihood that the selection of a construction company will fail and that the association will sign a contract with POSCO Engineering & Construction in a private contract format.
According to the construction industry on the 8th, the Bangbae 15 reconstruction business association will close the bidding for the second construction company selection on the 9th. In the first bidding in February, only POSCO Engineering & Construction participated, resulting in a failure. An industry source noted, “There is little likelihood that a large construction company with greater construction capability than POSCO Engineering & Construction will participate in the second bidding,” and added, “There is a possibility that the second bidding will also fail.” An association official stated, “It is still before the bid closing, so we can’t know if a competitive bidding will materialize or if only one construction company will respond, leading to a failure,” and said, “In any case, we will strive to select a construction company by the end of this year.
The Bangbae 15 district reconstruction is a project to develop 1,688 apartment units along with commercial and community facilities in the Bangbae-dong area of Seocho-gu, covering a site area of 84,934 square meters, with 3 basement levels and 25 above-ground floors. The total construction cost estimated by the association is 755.29076 billion won, which is 870,000 won per 3.3 square meters.
The construction industry anticipates PASCO Engineering & Construction will secure the Bangbae 15 district contract. POSCO Engineering & Construction has invested several years in this business site, and it is unclear if other companies such as Samsung C&T, which participated in the site briefing, will bid. HDC Hyundai Development Company also reportedly has not decided whether to bid. If POSCO Engineering & Construction is the only company to bid in the second round, the association can sign a contract with POSCO Engineering & Construction through a private contract.
POSCO Engineering & Construction has stated that if it secures the Bangbae 15 district project, it will be developed under its high-end brand "Otiere." Otiere is a brand launched by POSCO Engineering & Construction in 2022, focusing on the Banpo-dong and Bangbae-dong areas of Seocho-gu.
POSCO Engineering & Construction is applying this brand for the first time in the Shinbanpo 18th reconstruction (178 units) secured in 2019, developing it under the name "Otiere Shinbanpo." The aim is to complete it by October 2026. Additionally, for the Shinbanpo 21st (251 units) secured in May 2020, the name "Otiere Banpo" is being used, and the final construction work is underway for the anticipated completion in October.
In Bangbae-dong, the brand has been applied to the Bangbae Shindonga reconstruction project secured in January 2023. This business site, being developed with 843 units over 3 basement levels and 35 above ground in the area of 988-1 Bangbae-dong, is called "Otiere Bangbae."
An industry source noted, “POSCO Engineering & Construction, which has just launched a high-end brand, is working hard to promote the Otiere brand mainly in the Gangnam area,” and added, “I understand they are also pursuing contracts in other Gangnam areas, including Gaepo, centered on Banpo and Bangbae.”