[비즈한국] Samsung C&T028260 has been selected as the contractor for the Gaepo Woosung 7th Apartment reconstruction project, known as the final puzzle of the Gaepo District in Gangnam-gu, Seoul, beating out Daewoo E&C047040. Samsung C&T won over the union members by highlighting its powerful financing capability and shorter construction period.
The Gaepo Woosung 7th Apartment reconstruction union held a general meeting of members at the Seoul Housing & Communities Corporation (SH) headquarters in Gangnam-gu, Seoul, on the 23rd and selected Samsung C&T as the contractor. In the vote, Samsung C&T received 403 votes, defeating Daewoo E&C (335 votes) by a margin of 68 votes. The bidding process, which closed last June, saw a competitive race as both Samsung C&T and Daewoo E&C submitted proposals along with a 30 billion won bid bond. Samsung C&T proposed "Raemian Lumione" as the complex name, while Daewoo E&C proposed "Summit Pranity."
The Gaepo Woosung 7th Apartment reconstruction project involves demolishing the existing 802-unit apartment complex located at 615 Irwon-dong, Gangnam-gu, Seoul, and building a new complex with up to 35 floors above ground (1,122 units). The complex is considered to have high business viability because it is adjacent to Daecheong Station on Subway Line 3 and Daemosan Station on the Suin-Bundang Line, and it has a low floor area ratio of 157%. The estimated construction cost stated by the union during the bidding process reaches 677.9 billion won.
Samsung C&T highlighted its strong financing capabilities in this competition. At the time of bidding, Samsung C&T’s credit rating was AA+ from Korea Investors Service and AAA from the Korea Housing & Urban Guarantee Corporation, putting it more than one notch ahead of Daewoo E&C (A/Stable, AA). Leveraging its industry-leading credit rating, Samsung C&T proposed to provide unlimited financing for essential business costs, including additional relocation expenses (over 100% LTV) and tenant deposit refunds, at the lowest possible interest rates. In its bid, Daewoo E&C limited additional relocation expenses to 50% LTV and business promotion funds to 1 trillion won.
Samsung C&T also outperformed in terms of construction duration and costs. Based on the actual start date of construction, Samsung C&T’s construction period was 43 months, four months shorter than Daewoo E&C’s (47 months). Based on alternative designs, Samsung C&T’s construction cost was 675.7 billion won (8.69 million won per 3.3㎡), which was about 2.1 billion won (110,000 won per 3.3㎡) cheaper than Daewoo E&C’s proposal. Previously, the original design cost estimated by the Gaepo Woosung 7th union was 677.9 billion won (8.8 million won per 3.3㎡), and the construction costs of both companies based on the original design matched the union’s estimate.