Incheon Urban Corporation to Promote 'Jemulpo Station Urban Public Housing Complex Project' Using REITs Method

Public Invitation for Private Developers to Participate in Complex Development REITs in the Second Half of This Year

Location of Jemulpo Station Urban Public Housing Complex District

[Asia Economy Reporter Park Hyesook] Incheon Urban Corporation (iH) has decided to promote the 'Jemulpo Station Urban Public Housing Complex Project' through a REITs method. Additionally, to ensure stable and swift progress of the project, iH will directly perform the practical asset management duties (AMC) of the REIT.

According to iH on the 25th, the project area, covering 99,261㎡ around 94-1 Dohwa-dong, Michuhol-gu, Incheon, was included as a candidate site for the 'Urban Public Housing Complex Project' under the 'Public-led 3080+ Metropolitan Housing Supply Plan' announced by the Ministry of Land, Infrastructure and Transport in May last year. After obtaining residents' consent, it was designated as the first main district in Incheon this February.

The Urban Public Housing Complex Project is a development initiative where the public sector designates districts in areas difficult to develop through private projects, such as station areas, semi-industrial zones, and low-rise residential areas, to construct a complex of public housing along with office, retail, and industrial facilities.

Public housing (public rental and public sale), which is constructed, purchased, or leased with financial support from the national or local governments or the Housing and Urban Fund, must constitute more than 50% of the total housing.

When promoting the Urban Public Housing Complex Project through the REITs method, it minimizes the financial burden on iH as the project implementer, enables faster execution of government policy projects, and allows development profits to be returned to residents.

Earlier, in May last year, iH became the first local public enterprise to receive approval from the Ministry of Land, Infrastructure and Transport to concurrently operate AMC, and recently, it has also been authorized to perform AMC duties for public sale project REITs aimed at expanding public housing supply within the region.

The Jemulpo Station Complex Development REIT (tentative name) will involve private investors (construction and financial investors), iH, and local residents. Residents will contribute previous assets as in-kind prepayment, which will be developed, and upon liquidation, project profits will be returned to participants including local residents.

iH plans to invite private businesses to participate in the complex development REIT in the second half of this year, and after obtaining project approval and permits such as complex project plan approval in the second half of next year, will commence full-scale operations including resident compensation, relocation, and construction.

Lee Seung-woo, President of iH, stated, "Based on the accumulated experience and know-how from numerous development and real estate finance projects, we will successfully promote the Jemulpo Station Urban Public Housing Complex Project to supply quality housing and establish a hub for urban functions."

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