Gangnam Sinsa-dong Urban Lifestyle Housing Development Fund 133 Billion PF

[Asia Economy Reporter Lim Jeong-su] Project financing (PF) worth 133 billion KRW has been secured for the construction of urban-style residential housing in Sinsa-dong, Gangnam, Seoul. Recently, premium urban-style residential housing projects, which are relatively free from the price ceiling regulations, have been increasing in major downtown areas such as Gangnam, Yeouido, and Gwanghwamun.

According to the investment banking (IB) industry on the 28th, Sinsa Choi & Choi No.1 Project Finance Vehicle (PFV) received a development loan of 133 billion KRW from a lending consortium led by Korea Investment & Securities. The loan was executed in tranches according to collateral and repayment priority: senior tranche (Tranche A) of 100 billion KRW, mezzanine tranche (Tranche B) of 20 billion KRW, and junior tranche (Tranche C) of 13 billion KRW.

Sinsa Choi & Choi No.1 PFV is a special purpose company established to carry out an urban-style residential housing project on the site of the former Youngshin Building at 503-2, Sinsa-dong, Gangnam-gu, Seoul. The developer is located in Kite Tower, Yeoksam-dong, Gangnam-gu, where subsidiaries of the MDM Group, including Korea Asset Trust, are based. The shareholder structure was completed by issuing Class 1 preferred shares with an 8% dividend rate, Class 2 preferred shares that receive 20% of distributable profits excluding Class 1 preferred dividends, and common shares.

The procured funds are reportedly planned to be used for acquiring the project site and constructing premium urban-style residential housing. Near the project site, in Jamwon-dong 27-2, 27-4, and 27-6, Seocho-gu, the 'Sinsa Mulberry Hills' project is underway, which involves constructing two towers with 8 basement floors and 14 above-ground floors. Lotte Construction is in charge of construction, supplying a total of 103 units, including 83 officetels and 20 urban-style residential housing units. Neighborhood commercial facilities will be located from the 3rd basement floor to the 3rd above-ground floor.

An IB industry official said, "Recently, in major downtown areas such as Gangnam, Yeouido, and Gwanghwamun in Seoul, high-end urban-style residential housing projects that are relatively free from the price ceiling restrictions of the Housing & Urban Guarantee Corporation (HUG) are being successfully carried out," adding, "Although prices are high, there is strong demand for sales, and related financing is proceeding smoothly."

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