The completion date for the 'Raemian Sinbanpo Palace Shopping Center', which is the first commercial complex under the trust reconstruction method, is expected to be extended. Originally scheduled for completion by the end of April, the project has faced delays due to a construction halt last year, prompting the construction company Hanil Development to begin discussions with the developer regarding the extension of the completion date.
According to the maintenance industry on the 21st, the reconstruction schedule for the shopping center within the Raemian Sinbanpo Palace Apartment complex located in Seocho District, Seoul, is expected to be somewhat delayed.
The Raemian Sinbanpo Palace Shopping Center is part of the Raemian Sinbanpo Palace Apartment complex, which was completed in 1979 (formerly the Jamwon Daelim Apartment). This shopping center attempted to carry out a joint reconstruction with the apartment project initiated by the Jamwon Daelim Apartment in 2012, but was unable to narrow differences with the apartment association.
As the shopping center's reconstruction committee, which had been unable to promote the revitalization of the center until the apartment reconstruction project was completed, selected Koramco REITs Management and Trust as the reconstruction developer in 2023. It was the first shopping center to pursue reconstruction through a trust method. The construction company is Hanil Development, a subsidiary of Hanil Holdings. The shopping center is expected to be transformed into a multi-retail facility with three underground levels and five above-ground levels through the reconstruction.
However, the shopping center is already past the scheduled completion date of April 30. This is due to a construction halt ordered by the Seocho District Office because of ground subsidence cracks that occurred during the construction process last year. The construction company filed an administrative appeal against the Seocho District Office, received a dismissal of the construction stop order, and resumed work, but it could not complete the project by the scheduled deadline.
Hanil Development has entered discussions with the developer regarding the extension of the construction completion date, as they are subject to assume all debts that the borrower must pay to the lender if the completion date is exceeded under the responsibility completion agreement. The responsibility completion deadline is set for the 18th of next month. The guarantee amount for Hanil Development is 18.239 billion won.
A representative from Hanil Holdings noted, "We are discussing the extension of the construction completion date with the developer," adding, "The responsibility completion deadline may change depending on the outcome of future discussions."