Lotte Pays Deposit First, Daewoo Responds: Seongsu District 4 Construction Rights Rematch [Real Estate AtoZ]

Main Bid Closes on the 26th
Total Construction Cost Reaches 1.3628 Trillion Won

Lotte Engineering & Construction and Daewoo Engineering & Construction are once again competing for the redevelopment construction contract of Seongsu Strategic Redevelopment Zone District 4 in Seongdong-gu, Seoul, a project worth approximately 1.3 trillion won. After the first bidding was declared invalid in February, both companies have expressed their intention to participate in the new round of bidding, setting the stage for a rematch.

On May 21, Lotte Engineering & Construction announced that it had paid the full 50 billion won bid deposit for the Seongsu District 4 redevelopment project in cash. A representative from Lotte Engineering & Construction stated, "We will propose business terms tailored exclusively to Seongsu District 4, prioritizing the interests of the association members," adding, "In every aspect, including design and brand, we will complete Seongsu District 4 as a landmark complex representing Korea."

On the same day, Daewoo Engineering & Construction also officially confirmed its intention to participate. A representative from Daewoo Engineering & Construction said, "We will participate in the Seongsu District 4 bid," adding, "The bid deposit will be paid on the 22nd." The deadline for the deposit payment is 11 a.m. on the 22nd, and the bidding closes on the 26th.

Aerial view of Seongsu Strategic Redevelopment District 4 in Seongdong-gu, Seoul. Daewoo E&C

The Seongsu District 4 project involves the construction of apartments and ancillary welfare facilities, ranging from six basement levels to 64 above-ground floors, with a total of 1,439 units on a site of approximately 89,828 square meters in Seongsu 2(i)-ga 1-dong, Seongdong-gu. With a total construction cost of 1.3628 trillion won, it is considered one of the biggest contracts in Seoul's redevelopment market this year.

Lotte Engineering & Construction has announced plans to apply its premium residential brand 'LE-EL' to the project. The company is emphasizing its expertise in high-rise construction technology and its collaboration with global partner firms as key strengths.

During the first round of bidding, Daewoo Engineering & Construction proposed the name 'THE SEONGSU 520' for the complex, highlighting the site’s location advantage by referencing the approximately 520-meter stretch with views of the Han River in the name.

In the first round of bidding, which closed in February this year, both Daewoo Engineering & Construction and Lotte Engineering & Construction participated. However, inspections by the Seoul Metropolitan Government and Seongdong-gu Office found that both companies violated the guidelines regarding individual promotions to association members. As a result, the previous bidding was declared invalid.

Last month, the association issued a new bid announcement and has restarted the selection process for the contractor from scratch. The general meeting for contractor selection is scheduled for the 27th of next month.

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