Hyundai G.F Holdings shares rose more than 3% on the 14th. Hyundai G.F Holdings owns about 2,000 pyeong of commercial land in Apgujeong District 3, and the gain is seen as driven by the recent approval of a reconstruction plan for the area.
That day, Hyundai G.F Holdings stock closed at 7,970 won on the Korea Exchange, up 3.24% (250 won) from the previous trading day.
The approval of the Apgujeong District 3 reconstruction plan appears to have had a major impact. Hyundai G.F Holdings holds about 6,611.57㎡ (about 2,000 pyeong) of commercial land in Apgujeong District 3. Its book value is only 20 billion won, but the actual market price is estimated to reach about 500 billion won.
If the Apgujeong District 3 reconstruction proceeds, redevelopment of a large retail facility will be pursued, and investor sentiment appears to have gathered on expectations that Hyundai G.F Holdings' asset value and rental income will increase.
Earlier, on the 1st, the Seoul Metropolitan Government said it held the 10th Urban Planning Committee's delegated subcommittee meeting and approved with amendments the plan to designate (change) the Apgujeong District 3 maintenance zone and maintenance plan, the Apgujeong Apartment District basic development plan and urban management plan (change) plan, and the landscape review (proposal).
As a result, Apgujeong District 3 is expected to be reborn, 42 years after its completion in 1978, as a residential complex with up to 70 floors and a total of 5,175 households.