DL E&C has gone all-in on Apgujeong District 5. Choosing ACRO is the only way for Apgujeong District 5 to become Apgujeong's No. 1 complex going forward.Sim Jae-seok, DL E&C urban redevelopment business team Director General
On the morning of the 19th, union members and officials continued to visit DL E&C's Apgujeong District 5 promotion center in Sinsa-dong, Gangnam-gu, Seoul. The Apgujeong District 5 reconstruction project will transform the Apgujeong Hanyang Phase 1 and Phase 2 complexes into a supertall development with 8 buildings from 6 floors underground to 68 floors above ground, totaling 1,397 households. Hyundai Engineering & Construction and DL E&C are currently competing for the construction contract.
DL E&C put forward "ACRO Apgujeong" as the core strategy for this project. The plan is to go beyond the fixed idea of "Apgujeong = Hyundai" and differentiate across design, residential performance, and financial terms. The company said it proposed the best business terms tailored solely for Apgujeong District 5.
Sim Jae-seok, DL E&C's urban redevelopment business team Director General, said, "Hyundai Engineering & Construction did not present terms that surpass the level of Apgujeong Districts 2 and 3," adding, "DL E&C focused its capabilities on Apgujeong District 5 and prepared the most complete design and business terms."
◇ Full Han River views for all union members and application of specialized design
DL E&C said it designed the complex so that all union members can enjoy Han River views and a south-facing layout. To that end, it adopted a 4-row–1-row–4-row configuration and widened the distance between buildings to make Han River views possible even from the rear buildings. The maximum Han River view width is about 188 meters, it said.
Specialized designs will also be introduced in large numbers. ▲ 243 households with "highest" ceiling height specialization ▲ 11 penthouses ▲ 66 terrace houses ▲ 184 tilt units ▲ 955 households with three or more open sides ▲ 277 households with five bays or more — specialized elements were applied to a total of 1,232 households. The company said, "We made it so that all union members can enjoy specialized designs," adding, "Even within the same floor plan, specialized design competitiveness creates price gaps of hundreds of millions of won."
In particular, DL E&C plans to maximize the complex's symbolism by building a 244-pyeong super penthouse, the largest in Korea. The penthouse will occupy the top three floors of the 68-story building, the tallest in the complex. A company official said, "The super penthouse itself shapes an ultra-luxury complex image and will drive up the overall value of the complex in the long term."
It also emphasized residential performance. DL E&C said it will apply ultra-high-rise technology with 100-year durability certified as a new technology by the Ministry of Land, Infrastructure and Transport to Apgujeong District 5, and secure top-level performance in concrete strength, fire safety, and noise blocking. For the exterior, it plans to use ceramic panels, a higher-end material than ordinary aluminum sheets.
Parking space will also be secured at about 3.2 vehicles per household, with up to 949 spaces reserved for supercars.
◇ Project financing rate COFIX + 0%… commitment to guaranteed completion in 57 months
It also made aggressive proposals on business terms. DL E&C offered construction costs of 11.39 million won per pyeong (3.3 square meters). The total construction cost is 1.4904 trillion won. This is lower than Hyundai Engineering & Construction's proposal of 11.68 million won per pyeong and a total of 1.496 trillion won.
For the project financing rate, it proposed terms of COFIX (Cost of Funds Index) + 0%, and said it would support additional relocation loans up to 150% of the loan-to-value (LTV) ratio. It also allowed union members to defer payment of their contributions for up to seven years, longer than the four years proposed by Hyundai Engineering & Construction.
It also proposed a shorter construction period than its rival. DL E&C proposed a total construction period of 57 months. This is 10 months shorter than the 67 months proposed by the Hyundai Engineering & Construction–Hanwha consortium. DL E&C also submitted a guaranteed completion commitment to minimize concerns about construction delays.
A company official said, "We have verified that the timeline is fully achievable through collaboration with ultra-high-rise technology specialists," adding, "Given that the 163-story Burj Khalifa took 59 months and Busan LCT (84 floors) took 49 months, this is not an unreasonable schedule."
DL E&C also devised a plan to maximize union member income by expanding commercial space. A company official said, "DL E&C has know-how in commercial operations through D-Tower Gwanghwamun," adding, "If there are unsold units, we will provide 100% payment in kind."
DL E&C projected that, with these business terms, it could reduce total contributions by 521 billion won compared with its competitor. That translates into a reduction of 420 million won per union member household.