The Gaepo Woosung 7 Reconstruction Association in Gangnam-gu, Seoul, will hold a general meeting of its members and select a construction company. Since Samsung C&T and Daewoo E&C have fiercely competed to win the reconstruction contract for this complex, there is significant interest in which construction company will obtain the construction rights.
◇ Samsung vs Daewoo: a five-year wait since Banpo District 3 in 2020
According to the construction industry on the 23rd, the Gaepo Woosung 7 Reconstruction Association will hold a general meeting this day to select a construction company. The project involves converting an apartment complex completed in 1987 with 802 units into a 5 basement floors and 35-story building with 1,122 apartments and ancillary facilities. The construction cost proposed by the association is approximately 677.8 billion won. Samsung C&T and Daewoo E&C participated in the bidding for the construction company selection on June 19 and are currently competing vigorously.
Although the project scale is not large, both companies aim to secure this contract as a stepping stone to neighboring areas such as Daechi, Dogok, and Apgujeong in Gangnam-gu. The competition between Samsung C&T and Daewoo E&C for the urban redevelopment project in Gangnam, Seoul, has resumed after five years since the Banpo District 3 project (Raemian Trinity One) in 2020. At that time, Samsung C&T won the construction rights by securing 687 votes (a voting rate of 52%) among 1,316 participating members, defeating Daewoo E&C by a margin of 70 votes.
A construction industry official noted, "Samsung C&T, which does not have a strong presence in Gaepo-dong, is attempting to secure the Gaepo Woosung 7 project to maintain its pride as the industry leader, while Daewoo E&C's top management is showing great interest in this business site."
◇ 'Summit Prinity' vs 'Raemian Lumiwon'
Upon examining the conditions proposed by Daewoo E&C and Samsung C&T, it was found that Samsung C&T offered a lower construction cost than Daewoo E&C. Samsung C&T proposed a price of 8.689 million won per 3.3 square meters. Through alternative design, they plan to increase the saleable area to 40,066 square meters, which is 1,054 square meters larger than the original plan of 39,012 pyeong, generating additional sales revenue of around 84 billion won. Samsung C&T expects this will lead to an average reduction in membership fees of 110 million won per member. The project budget is based on the credit rating of Samsung C&T (AA+), promising to secure the lowest interest rates. The proposed construction period is 43 months.
Daewoo E&C proposed a construction cost of 677.8 billion won. When converted per 3.3 square meters, this amounts to 879,600 won. They proposed a construction period of 47 months and suggested funding under the condition of certificates of deposit (CD) interest +0%, with a maximum deferral of up to six years for payment of membership fees.
For the complex name, Daewoo E&C suggested 'Summit Prinity,' applying its high-end brand. French architect Jean-Michel Wilmotte, who designed the Louvre Museum and the Élysée Palace, along with the landscaping firm Byron, will handle the landscaping work, while the structural design will be reviewed by 'Bolinger and Grohmann,' a group known as Europe's leading structural engineering experts.
Samsung C&T proposed 'Raemian Lumiwon' as the name for the complex. They plan to apply a curved exterior in collaboration with the global design firm Arcadis and provide specialized community facilities such as a sky lounge.
A construction industry official said, "Although the complex is small, it is quite symbolic, and acquiring the construction rights will strengthen the position of the winning construction company."