Yeouido 'Daegyo' Contractor Bid Fails...Will Samsung C&T Secure the Project Uncontested? [Real Estate AtoZ]

The bid for selecting the contractor for the reconstruction of Yeouido Daegyo Apartment has failed. As only Samsung C&T participated in the bid, the likelihood of Samsung C&T securing the project without competition has increased.

According to the maintenance industry on September 2, only Samsung C&T submitted a bid for the Yeouido Daegyo Apartment reconstruction project, resulting in the bid being declared unsuccessful.

Perspective view of Yeouido Bridge reconstruction project. Provided by Yeongdeungpo District Office

원본보기 아이콘

The association immediately issued a re-announcement on the same day. After holding a second site briefing on September 10, the bid will close on October 27. The general meeting to select the contractor is expected to be held in November.

Lotte Engineering & Construction, which had initially considered participating in the bid, decided not to take part. Lotte Engineering & Construction explained, "After thoroughly reviewing the association's requirements, we determined it would be difficult to bid under the best business conditions, so we chose not to participate."

If Samsung C&T is the sole participant in the second bid as well, the company will proceed with a private contract as the preferred negotiation party. Samsung C&T's total orders for maintenance projects this year amount to 7.0828 trillion won, and if it secures the Yeouido Daegyo project worth 770 billion won, the total will increase to 7.8528 trillion won.

Yeouido Daegyo was completed in 1975 and is now being redeveloped into a complex with four buildings, up to 49 floors, and 912 units (including 146 rental units). The construction cost has been set at 11.2 million won per 3.3 square meters.

The floor area ratio for Yeouido Daegyo will be upgraded from a Type 3 General Residential Area to a Semi-Residential Area, applying a ratio of 469.99%. The complex will include public sports facilities to be donated to the city, such as a swimming pool and a gymnasium. A daycare center and a youth cultural welfare facility will also be built.

Yeouido Daegyo Apartment received project implementation approval on September 1. As the first project to receive Smart Planning Advisory, this comes one year after the maintenance plan was decided in September last year. The association plans to obtain approval for management and disposal in the first half of next year and begin relocation in the second half.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.