[PF] Hyundai Engi, Dasan 'Hillstate Jigeum Defore' Raises 260 Billion Won

Hyundai Motor Securities, Eugene Securities Join Major Lenders
Development of Knowledge Industry Centers and Commercial Facilities Also Planned

[Asia Economy Reporter Lim Jeong-su] Hyundai Engineering has successfully secured project financing (PF) for the construction of 'Hillstate Jigeum Difore' in the Jigeum district of Dasan New Town, Namyangju. HMC Investment Securities, a securities firm affiliated with Hyundai Motor Group, participated as the main lender.

According to the investment banking (IB) industry on the 30th, Dasan Jigeum D&C recently signed a project financing (PF) loan agreement worth 260 billion KRW. The loan was divided into senior tranche of 180 billion KRW, mezzanine tranche of 45 billion KRW, and junior tranche of 35 billion KRW based on collateral enforcement and repayment priority. The structure requires repayment of senior debt before the subordinated PF can be repaid.

Dasan Jigeum D&C is the developer of a residential (officetel) and commercial complex project on Block 2 (BL) of the commercial land in the Jigeum district. The complex will be built on a site of 13,015㎡ (3,937 pyeong) with 4 basement floors and 10 above-ground floors. It includes 840 officetel units and 230 commercial units.

Hyundai Engineering is in charge of construction. During the PF financing process, Hyundai Engineering agreed to take on the responsibility for guaranteed completion. This means that if the project is not completed within the deadline, Hyundai Engineering will bear the repayment burden of the PF loan instead of the developer. Construction is scheduled to start in November and aims for completion in July 2023.

HMC Investment Securities and Eugene Investment & Securities participated as the main lenders. An IB industry official said, "HMC Investment Securities is actively participating as a main lender in PF for Hyundai Engineering’s construction projects."

Hyundai Engineering is also responsible for constructing the knowledge industry center ‘DIMC Terra Tower’ and commercial facility ‘Pantheon Square’ located on Block 6 of the self-sufficient land in the Jigeum district of Dasan New Town. DIMC Terra Tower is an office complex with 4 basement floors and 10 above-ground floors, while Pantheon Square spans from basement level 1 to ground level 2. The total floor area is 1.5 times that of Yeouido 63 Building. The developer is Angang Development.

An industry insider said, "As the development of Dasan New Town expands, related PF financing has increased," adding, "With the establishment of a legal town nearby and improved access to Jamsil, PF financing is being secured stably."

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