The front section 1 area of the Yongsan Maintenance Works redevelopment project in Yongsan, Seoul, has been awarded to HDC Hyundai Development Company.
The Yongsan Maintenance Works Front Section 1 Residential Redevelopment Association held a temporary general meeting on the afternoon of the 22nd at the public relations center in Yongsan, Seoul. In the meeting, out of 437 total members, 396 attended the vote (55 in advance, 341 on-site, and 7 abstentions), and HDC Hyundai Development Company received 250 votes while POSCO obtained 143 votes, leading to HDC Hyundai Development Company being selected as the final construction company.
The Yongsan Maintenance Works Front Section 1 redevelopment project is a project that creates commercial and business facilities, including 777 dwellings and 894 office-tel units, in a structure with 6 basement floors and 38 above-ground floors in the area of Hangangno 3-ga, Yongsan District. The total project cost is 955.8 billion won.
HDC Hyundai Development Company proposed the project name 'The Line 330'. HDC Hyundai Development Company plans to develop the nearby 'HDC Yongsan Town' in connection with the nearby HDC I-Park Mall and aims to maximize spatial value by taking charge of development, operation, and construction.
Additionally, the construction cost was set at 8.58 million won per 3.3 square meters, which is more than 1 million won lower than the estimated price by the association (9.6 million won). The minimum relocation compensation proposed is 2 billion won (LTV 150%), and the financing rate for the project is suggested to be at the industry low of 'Negotiable Certificate of Deposit (CD) rate +0.1% fixed rate'.
HDC Hyundai Development Company proposed a shocking plan that if there are unsold units in residential facilities as well as commercial facilities such as stores and offices, the construction company would take on those unsold units. The conditions would allow for debt repayment based on either the original public offering price or the higher of the appraised value at completion.
In addition, they proposed a construction period of 42 months and a refund of 80% of the amounts before move-in.