Published 06 Mar.2024 08:16(KST)
Koramco Asset Trust announced on the 6th that it is promoting a street housing maintenance project in Busan Myeongjang 2 District and expanding the maintenance project target area nationwide. Koramco, which has recorded successful cases in five sites under the trust method, has so far promoted trust maintenance projects mainly in Seoul and the metropolitan area.
Busan Myeongjang 2 District is an area densely populated with old houses around 29-105 Myeongjang-dong, Dongnae-gu, Busan. It is a prime location near Exit 1 of Myeongjang Station on Busan Subway Line 4 and is surrounded by school districts such as Myeongjang Elementary School, Dongsin Middle School, and Haksan Girls' High School. As it is an area densely populated with old houses that are over 40 years old since completion, the residential environment is gradually deteriorating, making redevelopment urgent.
Koramco plans to promote the project as a project implementer, transforming it into 360 apartment units ranging from three basement floors to 29 above-ground floors. The project implementer method is a way in which landowners and others do not separately establish an association but entrust the entire project to a real estate trust company. Since the trust company participates from the beginning of the maintenance project, owners can be freed from complex tasks such as various permits, project financing, and construction company management.
Koramco has received the designation notice as a project implementer from Dongnae District Office in Busan and is entering the full-scale maintenance project procedures such as selecting a construction company and architectural review.
Koramco has promoted trust maintenance projects mainly in Seoul, Incheon, and Anyang in the metropolitan area. It secured orders within the scope where sales feasibility was verified and administrative work and construction management were possible. In January, it succeeded in the fifth maintenance project completion site, ‘Incheon Juan e-Pyeonan Sesang Edu Summit,’ proving its competitiveness in trust maintenance projects. Currently, only Koramco and Daehan Land Trust are real estate trust companies that have more than five successful sites in trust maintenance projects.
Recently, Koramco raised its equity capital to 500 billion KRW, the highest level in the real estate trust industry, and its scale has increased to the extent that the number of personnel related to maintenance projects exceeds 20. Expanding the order target nationwide is based on this confidence.
Lee Choong-sung, Division Head of Koramco Asset Trust, said, "The Busan Myeongjang 2 District maintenance project is Koramco’s first maintenance project in the Busan area and symbolically means expanding the portfolio, which had been centered on Seoul and the metropolitan area, nationwide." He added, "Koramco will show faster and more efficient execution than anyone else, as it promotes the project for the greater cause of improving owners’ residential environment, not just simple profit."
Koramco is a real estate trust company that first promoted trust-type reconstruction in Korea in 2015. Starting with Pyeongchon Daeseong United in 2019, it has completed projects such as Shinmagok Beksan Blooming, Incheon Songnim Pine & You, Mojong Kumho Eoullim iFirst, and Juan e-Pyeonhansesang Edu Summit.
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