Seoul Gangdong 'IKEA' Construction 250 Billion PF Maturity Extension

[Asia Economy Reporter Lim Jeong-su] IKEA Korea and the JKL-Mirae Asset consortium have extended the maturity of a 250 billion KRW project financing (PF) loan for the construction of the IKEA building in Godeok Biz Valley, Gangdong-gu.

According to the investment banking (IB) industry on the 13th, Jay-Kay-Mirae Gangdong PFV, established by IKEA Korea and JKL-Mirae, extended the maturity of the 250 billion KRW PF loan arranged by Mirae Asset Daewoo in March by three months until September.

Jay-Kay-Mirae Gangdong PFV received the 250 billion KRW PF loan in March to be used as construction funds for the IKEA building in Godeok Biz Valley, Gangdong-gu. The PFV is constructing a large complex facility consisting of a cinema, shopping mall, and offices on a 35,916㎡ site at 353-23 Godeok-dong, Gangdong-gu, Seoul.

HDC Hyundai Development Company is in charge of construction and began groundbreaking in the first half of this year. Completion is scheduled for 2024. The contractor provided credit support such as capital replenishment agreements and debt assumption agreements during the funding process.

The PF loan included a provision for extending the maturity through a revised loan agreement if a financial institution with creditworthiness exceeding that of HDC Hyundai Development Company agreed to fully acquire the PF securitization bonds. Since the conditions were met, the PF loan maturity was extended further.

Once the Godeok IKEA is completed, it will be the first IKEA store located within Seoul city.

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