Jeonnam Gwangyang Maheul District 'Posco The Sharp' 100 Billion PF

POSCO Construction to Complete Responsible Construction Within 44 Months
Underwritten by NH Investment & Securities

[Asia Economy Reporter Lim Jeong-su] Project financing (PF) worth 100 billion KRW has been secured for the development of the ‘POSCO The Sharp’ apartment complex in Maheul District, Madong, Gwangyang City, Jeollanam-do. POSCO Construction is in charge of construction and has provided a completion guarantee agreement.

According to the investment banking (IB) industry on the 9th, Korea Asset Development, the developer of Maheul District in Gwangyang, raised 100 billion KRW in PF under the lead management of NH Investment & Securities. The PF was divided into senior 55 billion KRW and subordinated 45 billion KRW based on collateral, repayment, and interest rate conditions, and lenders were recruited accordingly. The loan maturity is four years. Although the repayment is a lump sum at maturity, early repayment is also possible.

The raised funds will be used as project expenses such as construction payments for Maheul District, Madong, Gwangyang City. Korea Asset Development plans to develop and supply apartments consisting of 9 buildings with a total of 920 units on a 45,170㎡ (13,688 pyeong) site at 348-4 Madong, Gwangyang City, with 3 basement floors and 29 above-ground floors. The project will be carried out through a managed land trust method by Kyobo Asset Trust.

POSCO Construction is responsible for building the apartments under the ‘The Sharp’ brand. During the PF loan process, POSCO Construction provided the lenders with a completion guarantee agreement. If the apartments are not completed and approved for use by the local government within 42 months after fund disbursement, POSCO Construction will be responsible for repaying the PF debt.

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