Strategic comprehensive partnership to cover 16,800-unit development project

Officials from DK Asia and Kim & Chang pose for a photo Monday at the Future Housing Exhibition Hall after signing a strategic comprehensive partnership agreement for the Royal Park City Phase 2 development project, which will comprise 16,800 units. [DK Asia]
Officials from DK Asia and Kim & Chang pose for a photo Monday at the Future Housing Exhibition Hall after signing a strategic comprehensive partnership agreement for the Royal Park City Phase 2 development project, which will comprise 16,800 units. [DK Asia]

DK Asia is partnering with Kim & Chang to complete the Royal Park City Phase 2 development project — a 16,800-unit complex planned for a 2.6 million-square-meter site in Incheon's Geomdan-gu.

DK Asia announced Tuesday that it signed a "strategic comprehensive partnership" agreement with Kim & Chang on Monday.

The agreement covers a broad range of issues that may arise throughout the Phase 2 development, including permits and approvals, negotiations over local government cost-sharing, taxation, compensation, claims, and civil complaints and dispute resolution. The partnership allows DK Asia to proactively manage risk across the entire project.

The two sides had already built a stable working relationship during the Royal Park City Phase 1 project. One example: all obstacles within the Phase 1 site — a 1.09 million-square-meter development comprising 6,305 units — were cleared through compensation negotiations within eight months, achieving 100 percent vacancy.

The firms also won high marks from Incheon city and Seo-gu for smoothly coordinating the various stakeholder interests and civil complaints that arose during the compensation process, and for developing specialized infrastructure including a new school.

The Phase 2 project is currently working through the permitting process and covers an area roughly 1.7 times the size of Santander City, Spain's financial district. DK Asia has also arranged a project financing framework with Hana Bank, and plans to secure 90 percent of construction costs for the first tranche of 8,800 units.

The Phase 2 development aims to create a future-oriented mixed-use city featuring world-class infrastructure — including a waterfront-centered urban layout inspired by Cheonggyecheon and a 36-hole park golf course — and to set a new global standard for urban development.

"We will complete Royal Park City as a future-oriented mixed-use city where global finance, high-end residential, commercial and cultural elements are organically integrated, and develop it into a world-class urban development model that surpasses Spain's Santander City," DK Asia Chairman Kim Jeong-mo said.

Meanwhile, the "Royal Park City Limited 383" future housing exhibition hall, set to officially open June 13, will be developed as a brand experience-oriented residential culture space proposed by DK Asia. The company plans to use the venue to offer visitors an immersive look at high-end resort living, community amenities, landscaping and cultural content, showcasing the scale, future vision and differentiated residential value of Royal Park City.


lucky@heraldcorp.com