Samsung C&T's Bold Proposal for 'Banpo 3rd District'... Post-Completion Sale and 1-Year Project Shortening

[Asia Economy Reporter Moon Jiwon] Samsung C&T, which entered the bidding competition for the reconstruction project of Banpo Apartment 3rd Complex in Banpo-dong, Seocho-gu, Seoul, has presented groundbreaking conditions such as 'post-completion sale' and shortening the project period by one year.

Samsung C&T Construction Division announced on the 28th, "We submitted a bid proposal for the Banpo 3rd Complex reconstruction project on the 10th," adding, "leveraging our high credit rating and stable financing capabilities, we proposed post-completion sale for Banpo 3rd Complex."

Unlike the typical post-sale method, Samsung C&T proposed 100% post-completion sale. To this end, they proposed that the construction company take full responsibility for financing the entire project cost as resolved at the general meeting.

Post-completion sale is considered a method that maximizes the interests of the union members while complying with relevant regulations. Although post-sale reduces the union members' contribution, it requires selecting a construction company capable of stably financing large-scale project costs at low interest rates.

If the credit rating is low, even borrowing funds from the primary financial sector requires guarantees from the Housing and Urban Guarantee Corporation (HUG), and the limit is low. In such cases, the burden on union members increases, or the project is likely to be delayed.

Samsung C&T explained, "This method is possible because Samsung C&T holds the highest credit rating in the construction industry, AA+."

Based on verified construction management capabilities, Samsung C&T plans to shorten the construction period and reduce the total project duration by more than one year compared to competitors.

Samsung C&T proposed to complete the process from signing the construction contract to obtaining management disposition approval within three months and to finish the actual construction period within 34 months.

In fact, in the case of Jamsil Jinju Apartment, where Samsung C&T is participating as the construction company, the process from project approval to management disposition approval was completed within three months.

Additionally, Samsung C&T plans not to increase construction costs due to factors such as inflation after selecting the construction company to reduce the burden on union members. Even if post-sale is chosen, early refunds to union members are planned, and union members' payments will be made upon move-in.

A Samsung C&T official emphasized, "We proposed the best project conditions by combining the capabilities ranked first in construction capacity evaluation and 20 years of Ramian know-how," adding, "We will successfully carry out the construction of a new landmark representing Banpo."

Meanwhile, the Banpo 3rd Complex reconstruction project is a project to rebuild Banpo Apartment located at 1109 Banpo-dong, Seocho-gu, Seoul, into 17 apartment buildings ranging from three basement floors to 35 above-ground floors with 2,091 households, and to construct commercial and other ancillary facilities. The union canceled the previous construction company selection last December and is currently in the process of selecting a new construction company.

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