Samsung C&T announced on the 3rd that it presents financial conditions for fully covering the cost of the reconstruction project of Gaepo Woosung 7 at the lowest interest rate.
Samsung C&T plans to finance the entire project cost of Gaepo Woosung 7 at an unlimited lowest interest rate. The total project cost includes the 'essential project costs' such as the association's operating costs and various service fees, as well as 'project promotion costs' including additional relocation expenses and return costs of deposit rentals. Typically, project promotion costs in urban regeneration projects can amount to several dozen times the essential project costs and account for the largest share of the total project cost.
Therefore, large-scale funding at low interest rates acts as a key factor in reducing the contributions of association members and ensuring the success of the project. In this regard, Samsung C&T promised to provide full project financing to the association at an unlimited lowest interest rate.
It also proposed conditions allowing association members to pay their contributions four years after moving in. Samsung C&T has made it possible for members to defer the full payment of their contributions by 2 or 4 years from the time of moving in, rather than at the time of moving in. This not only reduces the burden on members but also significantly expands flexibility in managing funds to generate revenue from investments such as rent.
In addition, various conditions were established to provide more benefits to members, such as allowing members who incur refunds because the previous asset valuation exceeds the sale price to receive a full refund within 30 days after the completion of the sale contract.
Kim Myung-seok, head of the housing business division at Samsung C&T, said, "Quick and stable project promotion is a crucial factor directly linked to the interests of the association," adding, "We will ensure to implement the project conditions proposed to the association and provide various benefits that can be practically felt in the future."