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Samsung C&T Enters Sole Bid for Apgujeong District 4... First Step into 'Hyundai's Backyard'

[비즈한국] Samsung C&T028260 has taken the first step toward securing the construction rights for the Apgujeong District 4 redevelopment project in Gangnam-gu, Seoul, by entering a sole bid for the contractor selection. Initially, a fierce competition between Samsung C&T and Hyundai E&C000720 was expected, but the head-to-head battle did not materialize as Hyundai E&C decided to focus its capabilities on winning the bids for Apgujeong Districts 3 and 5. This marks the first time Samsung C&T has made its mark on the Apgujeong apartment district redevelopment market, which had previously been considered a Hyundai E&C stronghold.

According to industry sources on the 30th, Samsung C&T submitted a sole bid for the Apgujeong District 4 redevelopment project, which closed its bidding process on the same day. After paying the 100 billion won bid deposit requested by the Apgujeong District 4 association in cash that morning, the company submitted its bid proposal around 1:00 PM, about an hour before the deadline. As no other construction companies appeared by the deadline, the bidding process concluded with Samsung C&T's solo entry.

Samsung C&T has expressed its strong intent to win the Apgujeong District 4 project early on, putting effort into a plan to develop the area into a new landmark in Apgujeong. Last month, the company announced its collaboration with the world-renowned architectural firm Foster + Partners, presenting a strategy to maximize the unique value of Apgujeong based on its industry-leading technology and know-how. This indicates that Samsung C&T views Apgujeong District 4 as a symbolic project for the region rather than just a simple redevelopment.

The company even established a separate organization aimed at winning redevelopments in the Apgujeong apartment district. Last year, Samsung C&T created an Apgujeong project office under its Housing Business Division, tasking it with overseeing the entire Apgujeong apartment district. Establishing an office dedicated to a single apartment district was considered highly unusual. It is reported that the company appointed the project manager who led the Raemian One Bailey redevelopment as the head of the office and deployed veteran urban renewal experts to the front lines.

It was not a solo bid from the beginning. During the site briefing session for the selection of the Apgujeong District 4 contractor last month, seven companies attended, including Samsung C&T, Hyundai E&C, DL E&C375500, POSCO E&C, Ssangyong E&C, Kumho E&C002990, and Jeil Construction. Following the briefing, it seemed like a two-way race was forming between Samsung C&T and Hyundai E&C. However, as Hyundai E&C backed out of the District 4 bid at the last minute, the first major battle in the Apgujeong redevelopment race ended in a sole bid.

Kim Yoon-soo, head of the Apgujeong District 4 association, stated, "We expected a competitive bid between Samsung C&T, which had expressed early intent, and Hyundai E&C, which planned to 'town-ify' Apgujeong. Unfortunately, the District 4 bid fell through and resulted in a sole bid by Samsung C&T due to construction firms' strategies to avoid competitive bidding and reduce risk." He added, "The association plans to initiate re-bidding immediately to achieve our three major goals: high-end quality, large-scale design, and rapid progress, in order to secure Apgujeong's position as a landmark and market leader."

The Apgujeong apartment district in Gangnam-gu, Seoul, is considered the biggest battlefield for urban renewal projects this year. Starting with Apgujeong District 4 this month, Districts 3 and 5 are set to conclude their first round of bidding for contractor selection on the 10th of next month. District 4, which is the first to select a contractor, has a construction cost of 2.1154 trillion won, and the outcome is expected to influence the competitive landscape for the remaining districts. Initially, Samsung C&T, Hyundai E&C, and DL E&C showed interest in District 4. District 2, the largest project last year, was awarded to Hyundai E&C through a private contract.