'Raemian' Spectacular Return... Shinbanpo 15th Phase Secures Contract with Overwhelming Margin (Comprehensive)

126 out of 166 Choose Samsung C&T
Hoban Construction 22 votes, Daelim Industrial 18 votes

[Asia Economy Reporter Moon Jiwon] Samsung C&T has won the contract for the Sinbanpo 15th Reconstruction Project in Banpo-dong, Seocho-gu, Seoul. With this, Samsung C&T has successfully made a glamorous return to the reconstruction contract market after 5 years.

According to industry sources on the 23rd, the Sinbanpo 15th Reconstruction Association selected Samsung C&T as the new contractor at the regular general meeting held to choose the construction company.

Out of 181 association members, 166 voted, and Samsung C&T received 126 votes, recording a 75.9% approval rate. Hoban Construction followed with 22 votes, and Daelim Industrial received 18 votes.

Samsung C&T returned to the maintenance project contract market after 5 years since winning the integrated reconstruction contract for Sinbanpo 3rd and Gyeongnam Apartments in 2015. A Samsung C&T official explained, "It is even more meaningful as it was achieved in Banpo, the hometown of Raemian," adding, "It proved the high preference for the Raemian brand in the Banpo area."

The Sinbanpo 15th Reconstruction Project involves rebuilding the existing eight 5-story buildings with 180 households into six buildings ranging from four basement floors to 35 above-ground floors, totaling 641 households. The total construction cost is around 200 billion KRW.

Although the scale itself is not large, the competition among Samsung C&T, Daelim Industrial, and Hoban Construction was fierce as the complex is being built on prime land in Banpo-dong, Seocho-gu.

Daelim Industrial planned to create a large "Acro complex" by winning the Sinbanpo 15th Reconstruction Project as well, since its Acro River Park brand, considered the most expensive apartment nearby, is located right next door, but it failed to surpass Samsung C&T and Hoban Construction.

Hoban Construction, being at a disadvantage in terms of brand recognition compared to competitors, tried to persuade association members by offering an unprecedented loan interest rate of 0.5% per annum on project financing but also failed to overturn preferences.

Before the contractor selection, Samsung C&T proposed the new complex name for Sinbanpo 15th Reconstruction as "Raemian One Pentas," inspired by the star-shaped flower Pentas, whose flower language means "joy of life."

Subsequently, Samsung C&T promised to enhance residents' convenience by mobilizing the capabilities of Samsung Group affiliates such as Samsung Electronics, Samsung SDS, Samsung C&T Resort Division, S-1, and Samsung Welstory.

Industry experts analyze that with Samsung C&T selected as the contractor, it has been reaffirmed that the contractor's apartment brand remains important in reconstruction complexes in the Gangnam area. Samsung C&T had not participated in apartment maintenance projects since 2015 and joined this bidding relatively late, but the "brand power" was decisive.

Lee Young-ho, President of Samsung C&T Construction Division, said, "Samsung has always prioritized customer satisfaction, and that is why we were able to make Raemian the best apartment brand," adding, "We will keep 100% of our promises and make Raemian One Pentas the brightest complex in the center of Banpo."

Meanwhile, the Sinbanpo 15th Reconstruction Project had previously selected Daewoo Construction as the contractor in 2017 under a post-sale system, but conflicts arose with the association over construction costs, and the contract was eventually terminated at the end of last year.

This content was produced with the assistance of AI translation services.