'No.1 Public-Private Partnership Urban Regeneration REIT' Preferred Negotiator Selected as 'Gyeryong Construction Consortium'

The Ministry of Land, Infrastructure and Transport announced on the 23rd that it has finally selected the 'Gyeryong Construction Industry Consortium' as the private business operator to lead the first public-private partnership (PPP) urban regeneration REIT.

The PPP urban regeneration REIT is a new approach to urban regeneration REITs where the private sector, local governments, and the Housing and Urban Fund collaborate from the planning and conceptual stages to develop the project. This differs from the existing project method, which was primarily planned by the public sector with the private sector participating only in simple construction roles.

The private sector participates from project planning on the condition of investing at least 2% of the total project cost and oversees the entire project, including REIT structuring, design, construction, and facility operation. Local governments provide candidate sites such as shared land in declining areas and support the approval and permitting processes. The fund assists with the overall project promotion, including site solicitation and private business operator selection.

This project targeted the area around the demolition site of Oryong Stadium in Cheonan City (36,394㎡), and a call for private business operators was conducted from April 20 to May 9. The total project cost is approximately 363.9 billion KRW. The government selected the preferred negotiator after evaluating project capability, financial conditions, and development plans. The Gyeryong Construction Industry Consortium includes Gyeryong Construction, Hanyang, Dongil Togeon, and Jipyo Construction.

The private business operator, Cheonan City, and the Housing and Urban Fund will form a dedicated organization to complete detailed project plan consultations within the year and officially commence the project through REIT establishment and business approval.

Kong Gyeong-hwa, Director of the Urban Regeneration Economy Division at the Ministry of Land, Infrastructure and Transport, said, "This call for proposals is meaningful as it discovers a new model where the public and private sectors can jointly participate in urban regeneration," adding, "We plan to actively support smooth project progress through close communication with local governments and the private sector."

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