HDC Hyundai Development Company announced on the 16th that it proposed the 'best conditions' that surpassed the proposals of Samsung C&T and Hyundai E&C, which competed in the Hanam 4th district earlier this year in the proposal for the Yongsan Maintenance Depot Zone 1 project.
HDC Hyundai Development Company proposed advantageous conditions over the Hanam 4th district as well as its competitors in core areas such as ▲construction costs ▲financial conditions (project costs) ▲relocation expenses ▲construction period ▲responsibility for sales (asset substitution).
HDC Hyundai Development Company also announced that it would utilize the underground development rights in front of Yongsan Station, which only HDC Hyundai Development Company holds, to be responsible for and complete the consolidation directly with Yongsan Station.
Specifically, the construction cost per square meter based on the alternative design standards is set at about 8.58 million won, which is 360,000 won lower than POSCO E&C (8.94 million won) and is also significantly better than the conditions of Hyundai E&C (8.81 million won) and Samsung C&T (9.38 million won) at the time of the Hanam 4th district competitive bidding.
The most notable item is the interest rate condition. The project cost for the Yongsan Maintenance Depot Zone 1 is in the trillion won range, thus financial costs are closely related to the contributions of the members. HDC Hyundai Development Company proposed a fixed interest rate of 'CD + 0.1%', which is the lowest in the industry. It is the same as Hyundai E&C's CD + 0.1% (fixed rate) during the fierce 'interest rate competition' in the Hanam 4th district and lower than Samsung C&T's CD + 0.78% (variable rate) and POSCO E&C's CD + 0.70% (variable rate).
Financial costs accumulate as the project duration prolongs. HDC Hyundai Development Company promised a construction period of 42 months, which is 5 months shorter than POSCO E&C's 47 months.
Relocation costs are also at the highest level in the renovation industry, proposing a minimum of 2 billion won per member household, with a loan-to-value (LTV) ratio of 150%. This is significantly different from Samsung C&T's (938,300 won) in the Hanam 4th district or POSCO E&C's (8.94 million won).
HDC Hyundai Development Company stated that it would substitute assets for all types of buildings eligible for sale, including apartments, officetels, commercial facilities, and office buildings. The aim is to alleviate concerns about members' 'unsold risks' in advance. The amount for asset substitution will be the higher of the initial general sales price or the appraisal value at the time of completion. This is intended to institutionalize the revenue from the association's sales.