IKEA Korea-JKL Mirae, 250 Billion KRW PF for 'IKEA' Construction in Godeok Biz Valley

[Asia Economy Reporter Lim Jeong-su] IKEA Korea and the JKL Mirae consortium have secured 250 billion KRW in project financing (PF) funds for the IKEA construction project in Godeok Biz Valley, Gangdong-gu.

According to the investment banking (IB) industry on the 14th, JKMiraeGangdongPFV, established by IKEA Korea-JKL Mirae, borrowed 250 billion KRW under the management of Mirae Asset Daewoo. A special purpose company (SPC) established by the lead manager issued asset-backed bonds to raise funds, which were then lent to JKMiraeGangdongPFV. The loan maturity is June this year, with a lump-sum repayment condition at maturity.

IKEA Korea-JKL Mirae will use the raised funds for the construction of IKEA in Godeok Biz Valley, Gangdong-gu. The consortium plans to build a large-scale complex facility consisting of a cinema, shopping mall, and offices on a 35,916㎡ site at 353-23 Godeok-dong, Gangdong-gu, Seoul.

Godeok Biz Valley IKEA (IKEA) Bird's-eye View

This facility will include IKEA Korea, furniture retail stores, a shopping mall, CJ CGV cinema, and offices. Construction is scheduled to begin in the first half of this year, with completion targeted for 2024. HDC Hyundai Development Company has been selected as the contractor. Hyundai Development Company provided credit facilities such as liquidity supplementation agreements and debt assumption agreements during the funding process.

Upon completion, this will be the first IKEA store located within Seoul city. Existing IKEA stores in Korea are located in Gwangmyeong and Goyang, suburban areas of Seoul in Gyeonggi Province.

Meanwhile, Godeok Biz Valley, where IKEA will be located, plans to house about 150 companies including distribution sales facilities, hotels, convention centers, and research and development (R&D) centers.

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