HS Hwasung said on the 2nd that it will simultaneously carry out construction and equity investment for the "Ulsan Sinjeong public-supported private rental housing project" in Sinjeong-dong, Nam-gu, Ulsan.
The project will develop, as public-supported private rental housing, a complex at 1094 Sinjeong-dong, Nam-gu, Ulsan, consisting of five underground floors to 46 above-ground floors, 301 apartment units, 12 officetel rooms, and neighborhood living facilities.
The construction period is 48 months, and the contract amount is about 134.7 billion won.
In particular, the project is a development based on a real estate investment trust (REIT) structure that combines construction and equity investment. HS Hwasung will push the project forward by participating across the business beyond a simple turnkey contract. Through this, the company plans to secure construction performance revenue along with overall project outcomes jointly and to establish a structure that enables stable rental operations.
HS Hwasung said the Korea Housing & Urban Guarantee Corporation (HUG) and private financial institutions are participating in the project, underpinning its stability. It also said the REIT structure disperses development risk and strengthens project transparency.
The project consists of public-supported private rental housing that supplies residential space enabling long-term stable residence for people without dwellings. Some units will be specially supplied for young people, newlyweds, and older adults.
HS Hwasung is steadily expanding its rental housing development business utilizing REITs. In Dec. last year, it also combined construction and equity investment in a public-supported private rental housing development in Daemyeong-dong, Nam-gu, Daegu.
Park Ji-sik, Head of Team of the HS Hwasung Development Sales Team, said, "This project is part of expanding a development business model that combines construction and equity investment," adding, "Based on a REIT structure, we will secure both stability and business feasibility and supply sustainable residential space."