Hyundai Engineering & Construction said on the 11th that it proposed business terms to Apgujeong District 5 that put trust and responsibility with the association first.
The total construction cost proposed by Hyundai Engineering & Construction is 1.496 trillion won, an "all-in-one construction cost" structure that includes 192.7 billion won for high-end specialization expense and more. It also includes items the association would otherwise have to bear separately, such as alternative design permitting expense, construction cost verification expense, community fixtures and equipment, and initial operating expense.
It also proposed specialized elements for "Apgujeong Hyundai," including a ZERO WALL 240-degree panoramic view, a 17-meter high pilotis, the circular community "The Circle 420," and Robotics specialization.
For project financing, it expanded the lending scope to cover the entire project expense needed by the association, set the interest rate at COFIX+0.49%, and offered a fixed-rate condition under which Hyundai Engineering & Construction would shoulder any excess if the funding rate surpasses that level.
For relocation loans, it applies an LTV (loan-to-value) of 100% and uses the same rate for both the basic and additional relocation loans to reduce association members' interest burden.
For additional contributions, it proposed allowing payment deferral for up to four years after move-in (2+2), and it set up a structure under which Hyundai Engineering & Construction would take responsibility for funding even if financing from financial institutions is difficult at the time of move-in.
The construction period was proposed at 67 months. Apgujeong District 5 is a high-difficulty project near the Han River that requires excavation to five basement levels and construction of supertall buildings up to 68 stories, and securing sufficient construction time is seen as a key factor determining quality and safety.
A Hyundai Engineering & Construction official said, "To complete 'Apgujeong Hyundai,' we proposed the best business terms in Apgujeong District 5," adding, "We will create a new landmark complex through terms that can be fulfilled."