Incheon Yeongjongdo 'Daeseong Berhill' 140 Billion PF Secured

[Asia Economy Reporter Lim Jeong-su] Project financing (PF) funding worth 140 billion KRW has been secured for the construction of the Daesung Berhill apartment complex on Yeongjongdo Island, Incheon.

According to the investment banking (IB) industry on the 21st, Incheon Yeongjong PFV Co., Ltd., a special purpose corporation, recently received a PF loan of 140 billion KRW with NH Investment & Securities as the lead manager. The loan term is four years, with the principal to be repaid in a lump sum at maturity.

Incheon Yeongjong PFV will use the raised funds for the construction of the Daesung Berhill apartment complex in Yeongjong Sky City. The apartment construction project is currently underway at A25 block, 1709-1 Unnam-dong, Jung-gu, Incheon Metropolitan City. The complex will consist of 13 buildings, ranging from one basement floor to 25 floors above ground, with a total of 1,224 units, all with a single exclusive area of 84㎡.

The PFV is the developer of the apartment sales project and aims to commence construction this month and complete it by July 2024. DS General Construction Co., Ltd. and Daesung Berhill Construction Co., Ltd. will jointly undertake the construction.

Additionally, the two construction companies have provided a completion guarantee agreement for the PF loan. They have committed to obtaining building use approval from the local government within 38 months after the start of construction, and if they fail to meet the promised approval deadline or do not obtain the use approval, they will be responsible for the PF debt.

The Housing and Urban Guarantee Corporation has guaranteed the repayment of the PF loan by the PFV. An industry insider said, "The PF funding was smoothly arranged thanks to the guarantee from the corporation," adding, "The construction of the Daesung Berhill apartments will now be in full swing."

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