Hyundai Construction Proposes 'Minimum 360 Million KRW Refund of Development Profits' to Hanyang Owner

'Yeouido 1-ho Reconstruction' Bidding Battle
Proposed Reconstruction Construction Cost 774 Billion KRW

Hyundai Engineering & Construction, which is bidding for the reconstruction of Hanyang Apartment, known as the "Yeouido No. 1 Reconstruction," is reportedly proposing a strategy to refund apartment owners at least 360 million KRW each.

According to Hyundai Engineering & Construction's bid proposal posted on the Seoul Metropolitan Government's Comprehensive Maintenance Project Information Management System on the 27th, the company proposed a reconstruction construction cost of 774 billion KRW for Hanyang Apartment. This amount is 72 billion KRW higher than the 702 billion KRW proposed by competitor POSCO E&C.

A bird's-eye view of The H Yeouido First proposed by Hyundai Engineering & Construction for the reconstruction of Hanyang Apartment in Yeouido, Seoul.
[Photo by Hyundai Engineering & Construction]

The high construction cost includes a strategy to maximize development profits and refund owners. The details are ▲an increase in sales revenue of about 600 million KRW per household ▲Hyundai Engineering & Construction's acquisition of unsold units at the initial general sale price ▲100% refund upon moving into units of the same size.

Hanyang Apartment is a project site that plans to sell some officetels in addition to general apartments. Officetels are not subject to price regulations, allowing for higher pricing through a premium strategy. Hyundai Engineering & Construction plans to leverage its experience in creating "hyper-end officetels" such as "PH129" in Cheongdam-dong, Gangnam-gu, and "La Brue 27" in Samseong-dong, applying this to the Hanyang Apartment reconstruction to increase development profits.

Specifically, through alternative designs such as duplex layouts for all units and private terraces, the officetel area will be increased by 937 pyeong compared to the original plan, and the sale price will be set at over 85 million KRW per pyeong. In this case, sales revenue is expected to increase by 144 billion KRW from the KB-estimated contribution of 174.3 billion KRW to 318.3 billion KRW (over 182%).

Additionally, by maximizing apartment sales through world-class specialized designs created in collaboration with the premium brand The H and a global architectural group, the sales revenue is projected to increase by 186 billion KRW from the original 569.8 billion KRW to 755.8 billion KRW (over 132%).

Through this, total sales revenue is expected to increase by more than 330 billion KRW, generating about 600 million KRW in sales profit per household. A Hyundai Engineering & Construction official explained, "Even considering increased construction expenses, development profits exceeding 215.1 billion KRW are possible, allowing Hanyang Apartment owners to receive refunds of about 360 million KRW per household."

Furthermore, Hyundai Engineering & Construction proposed acquiring unsold units at the initial general sale price instead of construction costs if unsold units occur. The in-kind repayment conditions are ▲officetels at a general sale price of over 85 million KRW per pyeong ▲apartments at a general sale price of over 75 million KRW per pyeong ▲and commercial facilities at the initial general sale price.

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