The Hannam 5 Reinforcement Promotion Zone (hereinafter referred to as Hannam 5 Zone) has decided to select a construction company through a private contract this month. As competition did not establish in two bidding rounds last year, there are plans to switch to a private contract to determine the construction company. The possibility of DL E&C, which has been the sole bidder so far, being selected as the construction company is high. If DL E&C constructs, a complex under the 'Acro' brand will be formed in the area.
The Hannam 5 Zone plans to select a construction company this month, finalize a maintenance plan for project implementation approval in May, and then apply for the project implementation approval in June to Yongsan District. The Hannam 5 Zone is the area within the Hannam New Town that has the largest expanse adjacent to the Han River. Unlike other areas that include inclines, the fact that most of Hannam 5 Zone consists of flat land is also its strength.
According to the maintenance industry on the 7th, the Hannam 5 Reinforcement Promotion Zone Housing Redevelopment Maintenance Project Association will conduct a bidding process for a private contract on the 15th. The Hannam 5 Zone project involves constructing 51 multi-unit dwellings and ancillary welfare facilities, as well as commercial facilities (officetels) on 183,707 square meters located in Dongbinggo-dong, Yongsan-gu, Seoul, with 6 floors underground and 23 floors above ground. The association held two site briefings and bidding rounds in May and July last year, but both times DL E&C was the sole participant and bidding failed. According to the 'Urban and Residential Environment Maintenance Act,' if competitive bidding is not conducted more than twice in selecting a construction company, the association can enter into a private contract with the construction firm.
A representative from the association noted, "We have requested the 11 construction firms that attended the first and second site briefings to participate in the bidding for the private contract on the 15th," adding, "We plan to select one of the construction companies participating in the bidding as the preferred negotiation partner."
However, large construction firms have already secured other zones in Hannam New Town, so it is anticipated that DL E&C, which has focused efforts on the 5 Zone, will secure the construction contract without issues. Previously, in June 2020, Hyundai E&C was selected as the constructor for the Hannam 3 Zone, which is to be developed as 'The A.C.H. Hannam.' Additionally, in November 2022, Daewoo E&C was designated for the Hannam 2 Zone (Hannam Summit), and in January of this year, Samsung C&T was appointed for the Hannam 4 Zone (Raemian Glow Hills Hannam). An official from the construction industry stated, "Since large construction firms have decided to construct one zone each in nearby Hannam New Town, it is a challenging situation to re-enter bidding for the 5 Zone."
If the construction company is confirmed as DL E&C under the 'Acro' brand for the Hannam 5 Zone, major construction firms including Samsung C&T, Daewoo E&C, and Hyundai E&C will each carry out redevelopment projects in the Hannam New Town Zones 2-5.
Meanwhile, the Hannam 5 Zone plans to hold a general meeting of members on May 31 to finalize the construction company selection and the maintenance plan for project implementation approval. Once the maintenance plan is set, the association intends to apply for project implementation approval to Yongsan District in June. If project implementation approval is obtained within this year, it is expected that the sale application and management disposition plan approval will follow in the next year, with construction anticipated to commence in 2027.
Park Hapsu, a professor at the Graduate School of Real Estate at Konkuk University, said, "The Hannam 5 Zone has the largest area in the Hannam New Town that offers views of the Han River and is subjected to relatively fewer height restrictions due to Namsan, making it advantageous in terms of building coverage ratio and floor area ratio. It's a prime piece of land in Hannam New Town, so its value is expected to rise after redevelopment."