[GLOBAL ECONOMIC TIMES] Hanwha Construction Division announced on the 28th that it plans to complete the licensing and financial procedures for the ‘Seoul Station Northern Station Area Complex Development Project’ and begin construction in November.
Hanwha Consortium raised a bridge loan worth 740 billion won for land purchase in October last year, and completed the conversion to main PF worth 2.105 trillion won in about a year. This means that the Hanwha consortium has successfully completed related licensing approximately three years after completing preliminary negotiations for public contribution with the Seoul Metropolitan Government in 2021 and finalizing the development plan. Hanwha Construction Division, which is in charge of construction, plans to begin construction within November.
The Seoul Station North Station Area Complex Development Project is a project to build a large-scale complex combining MICE facilities, offices, hotels, and officetels in the area of Bongrae-dong 2-ga, Jung-gu, Seoul. Five buildings with a total floor area of approximately 340,000 m2 and 6 floors underground to 39 floors above ground are expected to be built on an idle railway site that has been vacant.
The northern area of Seoul Station, where the business is located, is adjacent to famous tourist attractions such as Namsan, Myeongdong, and Gyeongbokgung Palace, and has excellent accessibility to major areas such as Jongno, Euljiro, and Yongsan. In addition, not only the Seoul Metropolitan Subway Line 1, Line 4, Gyeongui-Jungang Line, and Incheon International Airport Railroad, which are currently in operation, but also the Seoul Metropolitan Rapid Transit (GTX) Line A and Shinansan Line routes will be connected.
In particular, this business is being led by Hanwha Group affiliates. Hanwha Construction Division will carry out the construction, and the implementation of the project will be handled by Seoul Station North Station Area Development, established through investment by Hanwha Impact, Hanwha, Hanwha Connect, and Hanwha Hotels & Resorts.
Based on the credit rating and strength of Hanwha Group's affiliates, the development of the area near Seoul Station successfully succeeded in raising approximately 2.105 trillion won in financing despite external issues such as prolonged high interest rates from the United States and wars in Europe and the Middle East.
Hanwha Consortium plans to establish and implement a long-term business plan based on the outstanding competitiveness of its affiliates in all areas of complex development projects, including construction, service/leisure, asset management, and investment. Hanwha Consortium operates as an asset and seeks to continuously increase asset value. This is a different strategy from the majority of development project developers and investors who aim for early recovery of investment costs through asset sales rather than operation after completion.
Kim Seung-mo, CEO of Hanwha Construction Division, said, “Hanwha Construction Division has successfully completed leading mixed-use development projects such as the Inspire Entertainment Resort, which features a 5-star hotel, a multi-purpose performance hall (arena), and shopping facilities, and the Suwon MICE Complex, which combines a department store, aquarium, and hotel. “It is finished,” he said, adding, “The project in the northern Seoul Station area, which will begin construction this time, will also be completed successfully.”
Hanwha Construction Division plans to sequentially begin construction of complex development projects such as the Suseo Station Transfer Center and Jamsil MICE, starting with the Seoul Station North Station area development project.
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