Contractor selection follows project plan approval

First trust-managed reconstruction project to partner with Samsung C&T

A rendering of the approved project plan for the Yeouido Sibeom apartment reconstruction [Korea Asset Trust]
A rendering of the approved project plan for the Yeouido Sibeom apartment reconstruction [Korea Asset Trust]

Korea Asset Trust has demonstrated its execution capabilities in large-scale reconstruction by completing both the project implementation plan approval and the contractor selection for the Yeouido Sibeom apartment reconstruction in quick succession. The project marks the first time a trust company acting as project developer has partnered with Samsung C&T on a trust-managed reconstruction, setting a new benchmark for collaboration in the sector.

Yeongdeungpo-gu approved the project implementation plan for the Yeouido Sibeom apartment reconstruction on Oct. 13, according to industry sources. At a general meeting of landowners and property holders held Friday, a motion to select Samsung C&T as the contractor was passed.

The Yeouido Sibeom apartment complex, completed in 1971, currently comprises 1,584 units and will be rebuilt as a large-scale residential complex of up to 59 stories under the approved plan. The development will bring a major residential facility to a site adjacent to the Han River and the Yeouido financial district. Total construction costs are estimated at around 2.27 trillion won ($1.7 billion).

The milestone was supported by active administrative cooperation from Yeongdeungpo-gu and other relevant authorities. Coordination among regulatory agencies, administrative backing, Korea Asset Trust's project management, and the cooperation of landowners and property holders all came together to secure the project implementation plan approval.

Through the Sibeom apartment reconstruction, Korea Asset Trust is expected to combine its own project management capabilities with Samsung C&T's construction technology and the Raemian brand, creating a new model of collaboration for trust-managed reconstruction projects.

"Construction companies have become increasingly selective in the projects they take on," an industry official said. "In a reconstruction market where construction costs and financing burdens have grown, the specificity of a project plan, the status of regulatory approvals, and the conditions for advancing subsequent procedures are becoming just as important as a prime location."

Korea Asset Trust advanced both the project implementation plan approval and the contractor selection in tandem at the Sibeom apartment project, delivering concrete results on those fronts. By completing the two key procedures — finalizing the project plan and designating the contractor — in succession, the company has laid the groundwork to pursue the next stages, including the establishment of a management and disposal plan.

The Sibeom apartment reconstruction project will proceed with follow-up steps including the formulation and approval of a management and disposal plan.

"Yeouido Sibeom is a landmark complex that represents Yeouido's reconstruction, and as the project developer, our top priority has been to advance the project swiftly and stably," said Kim Hae-yong, executive director of Korea Asset Trust's urban reconstruction division. "Now that we have secured the project implementation plan approval and brought on Samsung C&T — with its outstanding construction technology and brand competitiveness — as our contractor, we will carry out all subsequent procedures, including the management and disposal plan, without delay, and develop this into a landmark complex that defines Yeouido."


hss@heraldcorp.com