'Daegu MBC Site Development' 900 Billion PF Financing Secured

Hana Financial Investment Underwriting
POSCO Construction Building Mixed-Use Complex

[Asia Economy Reporter Lim Jeong-su] A 900 billion KRW project financing (PF) fund for the development of the Daegu MBC site has been secured. Hana Financial Investment, GS Retail, and others are investing to construct multi-family housing, officetels, and commercial facilities.

According to the investment banking (IB) industry on the 11th, Daegu MBC Site Complex Development PFV Co., Ltd. (Daegu MBC-PFV) signed a PF limit loan agreement worth 900 billion KRW with a consortium of financial institutions.

The PF loan was raised by recruiting lenders divided into senior tranche of 750 billion KRW, mezzanine tranche of 120 billion KRW, and junior tranche of 30 billion KRW according to collateral and repayment priority. The loan maturity is 5 years with a lump-sum repayment condition at maturity.

Daegu MBC-PFV is a special purpose company established with a capital of 10 billion KRW invested by Hana Financial Investment (15.10%), Moa General Construction (40.50%), GS Retail (19.50%), and Jun Co., Ltd. (24.90%) for the purpose of project implementation.

The project plans to build and sell 604 multi-family housing units and 154 officetel units in a building ranging from 6 basement floors to 33 above-ground floors on the Daegu MBC site. The construction companies are POSCO Construction and Moa General Construction, aiming for completion in 2024. POSCO Construction must complete the project on schedule and obtain usage permits from local governments and others.

Hana Financial Investment, a shareholder company, is in charge of leading the PF fund raising. An IB industry official said, "The Daegu MBC site is a prime location in Beomeo-dong, Suseong-gu, Daegu, where key office towns and residential areas are concentrated," and added, "The sales of apartments and officetels are expected to be successful."

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