Taeyoung Construction has entered the apartment leasing market for the first time since initiating corporate restructuring efforts. As Taeyoung Construction has succeeded in both government projects and urban renovation business, it appears that the company's performance in the private leasing market will determine how much trust it has regained in the market.
According to Taeyoung Construction on the 8th, the company will unveil a model house for 'The Palisade Dashian' on the 10th at the area of 481-1, Sincheon-dong, Dong-gu, Daegu.
'The Palisade Dashian' is a complex composed of 418 units, with three underground levels and a maximum of 20 floors across eight buildings. The exclusive areas range from 100 to 117 square meters, primarily focusing on mid-sized units. The number of units by exclusive area includes ▲ 100㎡ 70 units ▲ 106㎡ 38 units ▲ 109㎡ 38 units ▲ 115㎡A 174 units ▲ 115㎡B 17 units ▲ 115㎡C 16 units ▲ 117㎡A 48 units ▲ 117㎡B 17 units.
This sale is the first since Taeyoung Construction began its workout, and it has reportedly received considerable internal focus from the company. Taeyoung Construction applied for a workout last year amid a crisis in real estate project financing (PF). The outcome of this sale could serve as a gauge for the re-establishment of market trust in Taeyoung Construction. A representative from Taeyoung Construction noted, 'We have reasonable expectations since the previous sale performed well.'
The creditors are also showing significant interest in this sale for the same reason. A representative from Taeyoung Construction's creditors commented, 'The fact that Taeyoung Construction has secured both government projects and private contracts can be seen as a signal of financial recovery,' adding, 'We are closely monitoring this apartment leasing situation.'
However, selling in Daegu, which was once referred to as the 'graveyard of unsold apartments,' is expected to pose a burden for Taeyoung Construction. Although the housing market is improving as Daegu city adjusts its housing permits, the temperature of the apartment leasing market remains low. The number of unsold dwellings in Daegu exceeded 10,000 three years ago, but as of November last year, it had decreased to 8,175. An industry representative stated, 'The market in Daegu is still not favorable,' noting that while the previous apartment leasing in Daegu sold out, there are variables based on location and product, making it difficult to guarantee successful sales.
If this sale is successful, it is expected to accelerate Taeyoung Construction's normalization efforts. Even amidst the workout situation, Taeyoung Construction is regaining market trust by securing government projects and urban renovation deals. Previously, Taeyoung Construction secured projects such as the 'Sosa~Yeongdeok Line Daejeon~Dangjin Expressway Section 3' and resource recovery facility project in Gwangmyeong City, as well as sewage pipe maintenance works in Pocheon City. At the end of last year, it was also selected as the constructor for the housing redevelopment project in the Jangam 6 district of Uijeongbu. Should Taeyoung Construction be successful in the private apartment market as well, it could gain traction in corporate improvement efforts, increasing the likelihood of achieving its goal to exit the workout by 2027.
Another representative from the creditors stated, 'The management normalization is progressing according to the corporate restructuring plan,' adding that 'the timing of achieving workout exit will be determined based on the speed of business progress following the acquisition of government contracts and others.'