Seoul's Largest MICE Complex 'Magok Le West' Secures 1.9 Trillion KRW PF

[Asia Economy Reporter Lim Jeongsu] Project financing (PF) funding worth 1.92 trillion KRW has been secured for the development of 'LE WEST,' Magok’s largest MICE (Meetings, Incentives, Conferences, and Exhibitions) complex in Seoul. With the completion of construction payment arrangements, the MICE complex development project is expected to accelerate.

According to the investment banking (IB) industry on the 17th, Magok MICE PFV signed a PF credit line agreement totaling 1.92 trillion KRW with a consortium of financial institutions. The loan maturity is 3 years and 6 months, and investors were recruited based on seniority priority?senior, mezzanine, and junior?according to collateral and repayment priority. During the PF loan securitization process, Meritz Securities and Hi Investment & Securities provided credit guarantees.

The loan is structured as a bullet repayment at maturity; however, early repayment is required when sales proceeds from residential lodging facilities and retail facilities within the MICE complex, or rental income from senior welfare housing, are deposited. Additionally, early repayment is mandated if proceeds are received from the sale of office facilities, retail facilities, or hotels.

Magok MICE PFV is the project operator for the Magok MICE complex development in Magok-dong, Gangseo-gu, Seoul. Lotte Construction, solar energy company Topsola Co., Ltd., Kumho Industrial, Daejeo Construction, SD AMC (Asset Management Company), Koramco Asset Management, Meritz Securities, and Hi Investment & Securities hold common and preferred shares in the company.

The procured funds will be used for the Magok MICE complex development project. Lotte Construction, the general contractor, will build a MICE complex in the Magok Special Planning Zone that combines a convention center, hotel, cultural and assembly facilities, senior welfare housing, office facilities, and retail facilities.

The site covers 82,724 square meters (25,068 pyeong), which is nine times the size of Seoul’s Sangam World Cup Stadium, and after development, the total floor area will be approximately 820,000 square meters, about twice the size of COEX in Samseong-dong. It is the largest MICE complex ever developed within Seoul city.

Lotte Construction plans to begin construction within this month and complete it by 2014. Once development is finished, it is expected to be operated in connection with companies located in the Magok district such as LG Group, Kolon Group, and Nexen Group. Additionally, it is anticipated to help decentralize the MICE industry, which is currently concentrated in Gangnam’s COEX.

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