Samsung C&T's construction division proposed to fully and responsibly raise the entire project financing with no cap at the lowest interest rate for the integrated reconstruction of Shin Banpo 19 and 25 to ensure swift, stable progress and minimize members' burdens. It also suggested terms of 100% loan-to-value (LTV) on relocation loans and requiring only 100% payment of the contribution without contract and interim payment loans.
Samsung C&T said on the 30th that it prepared financial terms to maximize members' interests based on its strong financial soundness and the industry's only highest credit rating (AA+). The proposed financial terms are: ▲ responsibility to raise the entire project financing with no cap at the lowest interest rate ▲ 100% LTV for relocation loans ▲ "zero" HUG guarantee fees ▲ payment of only 100% of the contribution at move-in with no loans ▲ payment of 100% of refunds within 30 days after contract, among others.
Samsung C&T plans to raise the entire financing for the Shin Banpo 19 and 25 projects at the lowest interest rate with no cap. The entire project cost refers to the aggregates that include all "essential project costs," such as union operating expenses and various service fees, as well as "project facilitation costs," such as additional relocation loans and return of lease deposits.
A Samsung C&T official said, "We promised to take responsibility for raising the entire project financing at the lowest interest rate with no cap," and noted, "Above all, we proposed the most realistic and safe way to cut interest rates based on the builder's credit rating and financial capacity."
Samsung C&T also plans to convert the 25 billion won bid bond paid at the time of bidding into union project funds at a CD+0% rate immediately upon selection of the builder, aiming to reduce the union's initial project cost burden until the management and disposition plan is approved.
For relocation loans, Samsung C&T proposed 100% LTV, combining the basic relocation loan with an additional relocation loan. For example, for the 34-pyeong type at Shin Banpo 25, the currently expected appraised value of the previous asset is about 3.5 billion won, and Samsung C&T would support relocation financing up to the same amount as the maximum limit.
The contribution payment terms also minimize the burden on members. Samsung C&T proposed a condition under which members pay only 100% of the principal of the contribution at move-in without needing a loan. Typically, contribution payments are made in stages according to set ratios for the down payment and interim payments, or on the premise of consumer financing such as interim payment loans. In addition, members face lending regulations and limit restrictions and an interest burden, and if interim loans do not proceed smoothly, they may have to raise funds personally.
To minimize such financial burdens on members, Samsung C&T proposed eliminating the down payment, interim payments, and interim payment loans altogether, and paying only the principal of the contribution at move-in. From the members' perspective, they can minimize financial burdens through move-in without separate fundraising or an interest burden during the project period.
In addition, Samsung C&T prepared conditions that allow members to enjoy more benefits, such as ensuring that members whose previous asset appraisal value exceeds the sale price and thus generate refunds receive 100% of the refund within 30 days after completing the sales contract.
Im Cheol-jin, head of the dwellings sales division at Samsung C&T, said, "Swift and stable project execution is a key factor directly tied to the union's interests," adding, "We will faithfully carry out the proposed project terms so that members can feel tangible cuts in financial costs and benefits."