LH, Asan Tangjeong and Goyang Samsong REITs Private Sector Operator Recruitment

[Asia Economy Reporter Lee Chun-hee] Korea Land and Housing Corporation (LH) is partnering with private REITs to supply housing.

On the 15th, LH announced that it will invite bids for 'package-type housing development REIT private operators (construction and financial companies)' to jointly promote the construction and sale of apartment complexes in the Asan Tangjeong district, Chungnam, and block-type detached houses in the Goyang Samsong district, Gyeonggi.

Housing development REITs are a business model where private operators establish REITs to purchase apartment complex sites from LH and jointly construct and sell houses with construction companies. LH guarantees the purchase of unsold houses to share the business risk.

Through this bid, apartment complex land of 49,781㎡ (787 households) in Asan Tangjeong 2-A11 block and block-type detached house land of 21,222㎡ (107 households) in Goyang Samsong detached 14-1, 14-2, and 15 blocks will be supplied together as a package. For the apartment complex land, specialized designs with household separation must be applied to at least 5% of the total households.

The Asan Tangjeong district is expected to open Tangjeong Station on Seoul Metropolitan Subway Line 1 within the district next year, and the Asan IC on the Asan-Cheongju Expressway near the complex is scheduled to be newly established in 2022, making it convenient for metropolitan transportation. Additionally, plans to expand the Samsung Display industrial complex and develop a research and development (R&D) cluster near the district are underway, enhancing proximity to workplaces and thus expected to generate strong demand.

The Goyang Samsong block-type detached houses in blocks 14-1, 14-2, and 15 are evaluated as sites with excellent geographical conditions close to Seoul, suitable for creating pleasant and livable urban countryside housing complexes.

The evaluation criteria for this bid consist of 'quantitative evaluation,' which assesses payment conditions, stock offering plans, and performance evaluation, and 'qualitative evaluation,' which assesses financial plans (business feasibility analysis, sales plans, etc.) and development plans (complex, architecture, specialized plans, etc.).

In the qualitative evaluation, companies that incorporate LH's proposed specialized designs, such as energy reduction, safety guarantees for socially vulnerable groups, and securing sunlight and views, will receive high scores to provide a pleasant living environment for future residents. Additionally, companies that strive to realize social values such as job creation will be awarded extra points.

Furthermore, LH plans to conduct a public stock offering to the general public for the REITs to be established in the future. This will provide an opportunity for anyone to participate in indirect real estate investment with small amounts and share development profits through the project.

The bidding schedule will accept letters of intent from January 5 to 7 next year, receive business application documents on March 16, and select the preferred negotiation partner in April. For more details, please refer to the information posted on the LH website (Customer Support - News - Bid Information).

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