Decision on Ulsan B04 District Redevelopment Consortium to Be Made on the 17th

A panoramic view of the area around 190-4, Gyodong, Jung-gu, the Ulsan B04 redevelopment zone.

[Asia Economy Reporter Cha Wanyong] The decision on whether a consortium will be formed for the largest redevelopment project in the provinces, Ulsan B04 District, which failed to select a construction company, will be made on the 17th. It has been confirmed that Samsung C&T and Hyundai Construction, who were requested to participate in the consortium, have not yet given any definitive response to the union.

According to the B04 District redevelopment union and Samsung C&T, Hyundai Construction on the 16th, the union sent an official letter requesting participation in a joint construction contract to Samsung C&T and Hyundai Construction on the 3rd, asking for a reply by 5 p.m. on the 17th.

Both construction companies began reviewing their participation in the consortium immediately upon receiving the letter, and it is known that they will decide on participation by considering issues such as ▲ project conditions between the union and the construction companies ▲ shareholding issues between Samsung C&T and Hyundai Construction ▲ selection of the lead company ▲ brand order, etc. Neither side has sent a reply to the union yet.

Industry insiders expect the Samsung C&T-Hyundai Construction consortium to be formed smoothly. Both construction companies have not withdrawn from the site and are promoting to the union and union members. In fact, both Samsung C&T and Hyundai Construction are building promotional centers for the B04 redevelopment. The scheduled opening date for both is the 13th.

The Ulsan B04 redevelopment project involves redeveloping the area around 190-4, Gyodong, Jung-gu, constructing 55 apartment buildings with 4,080 households (including 206 rental units) from 4 basement floors to 29 floors above ground. The expected project cost exceeds 2 trillion won, and the expected construction cost is 1.2 trillion won, making it the largest redevelopment in the provinces. The project has been evaluated as highly profitable, with 2,946 units available for general sale excluding the union members’ quota (1,134 units).

Meanwhile, the urban maintenance industry is paying close attention to whether the consortium for the Ulsan B04 District redevelopment will be formed. Since the beginning of this year, with interest rate hikes and raw material price increases freezing the construction market, construction companies have been cautious about bidding for urban maintenance projects. Even medium to large-scale maintenance projects in Seoul, such as Bangbae Shindonga reconstruction, Sindang 8 District redevelopment, and Gwangjin Junggok Apartment public redevelopment, have seen cases of failed bids due to single bids, increasing the concerns of unions wanting to proceed quickly. If the consortium for the Ulsan B04 District redevelopment project is formed, it is expected that more projects will consider forming consortia.

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