Samsung C&T, which has announced its withdrawal from the bidding for the reconstruction contractor selection of the Apgujeong District 2 project, is expected to focus on winning contracts for the Apgujeong District 3 and District 4 projects.
According to the maintenance industry on the 1st, Samsung C&T has begun preparations to secure the construction rights for the Apgujeong District 3 and District 4 projects.
An official from the maintenance industry said, "Samsung C&T aimed for the Apgujeong District 2 project, which had the fastest pace among the reconstruction maintenance zones in Apgujeong, but the conditions proposed by the association were too strict, making it difficult to gain an advantage, so they withdrew from the project. Instead, I understand they are targeting Apgujeong District 3, known for its geographical and symbolic value, as well as Apgujeong District 4, which consists of medium and large units that could enhance the image of a traditional affluent neighborhood."
An official from a large construction company also noted, "Samsung C&T won the construction rights for the Hannam District 4 redevelopment after a fierce two-horse race with Hyundai E&C earlier this year. Although Samsung C&T has given up on the Apgujeong District 2 project, they are strategizing to ensure victory in the remaining bidding for the reconstruction maintenance zones in Apgujeong, such as District 3 and District 4, using their experience from District 4."
The Apgujeong District 3 reconstruction project is a plan to transform an area of 39,187.8 square meters at 369-1 Apgujeong-dong, Gangnam-gu, Seoul, into new apartments with a maximum capacity of 5,175 units, rising to 70 floors, including 3,934 units from Hyundai 1st to 7th phases, Hyundai 10th, 13th, and 14th phases, and Daelim Villat. The project cost is estimated to be around 7 trillion won.
The Apgujeong District 4 reconstruction involves building new apartments with a maximum capacity of 1,722 units, rising to 69 floors on an area of 118,859.6 square meters at 487 Apgujeong-dong, including Hyundai 8th phase, Hanyang 3rd, 4th, and 6th phases. The expected project cost is around 2 trillion won.
Previously, Samsung C&T and Hyundai E&C engaged in fierce competition over Apgujeong District 2, but Samsung C&T suddenly announced it would not participate in the bidding ahead of the site briefing on the 20th of last month.
A representative from Samsung C&T stated, "Due to the unusual restrictions on alternative design and financial conditions imposed by the Apgujeong District 2 reconstruction association, it has become impossible for Samsung C&T to submit the proposals it had prepared," adding, "As a result, we decided not to participate in the bidding for Apgujeong District 2."
Samsung C&T has stated that it is keeping the possibility of participating in projects in the Apgujeong reconstruction maintenance zones open, not just for Apgujeong District 3 and District 4.
A representative from Samsung C&T remarked, "Apgujeong District 3 is the most landmark project among the reconstruction maintenance zones in Apgujeong, so we are interested in it," adding that they are also considering participation in the fast-paced Apgujeong District 4 project following Apgujeong District 2.
Currently, there are a total of six areas in the Apgujeong reconstruction zone, amounting to over 10,000 housing units. The locations selected for the Seoul Rapid Integrated Planning (rapid plan) are Districts 2, 3, 4, and 5. Among these, only Apgujeong District 2 has met all the urban planning standards set by the Seoul city and has confirmed the revised maintenance plan.
In the case of Apgujeong District 3, the schedule was delayed due to violations of the Seoul Rapid Plan during the design competition two years ago. After changing the design, including the number of floors, they applied again for approval from the city of Seoul, but the negotiations are currently taking longer.
The Apgujeong District 4 project was the first to successfully establish an association among the Apgujeong reconstruction zones. Since establishing the association in 2020, it has been undergoing the process of changing the maintenance plan to meet the Seoul Rapid Plan standards. The selection of a construction company is expected to take place in the latter half of this year or the first half of next year.