Hyundai Engineering & Construction has secured the construction contract for the Apgujeong District 5 reconstruction project, one of the fiercest battlegrounds for redevelopment in southern Seoul. By winning at the only Apgujeong reconstruction site where a competitive bid took place, the company strengthened its leadership in redevelopment projects across the Apgujeong area.
According to the redevelopment industry on the 30th, the Apgujeong District 5 Reconstruction and Maintenance Project Association held a general meeting at Apgujeong High School in Seoul to select the builder and chose Hyundai Engineering & Construction as the final contractor.
Of 1,199 association members, 1,016 cast ballots, and 599 voted for Hyundai Engineering & Construction. With a vote share of 58.9%, Hyundai Engineering & Construction beat DL E&C, which received 398 votes (39.2%), to win the construction rights. There were 19 abstentions.
Apgujeong District 5 will rebuild the Hanyang Phase 1 and 2 apartments into a residential complex of 8 buildings, 1,397 households, with 5 basement levels to 68 aboveground floors. The association estimated the project cost at 1.496 trillion won.
In sheer size, it is smaller than Apgujeong Districts 2 to 4, but it drew intense interest from the construction industry as the only Apgujeong reconstruction site to hold a competitive bid.
Hyundai Engineering & Construction put the succession of the "Apgujeong Hyundai" brand at the forefront. It proposed "Apgujeong Hyundai Galleria" as the complex name and, in cooperation with Hanwha, which operates Galleria Department Store, presented a development plan to link the complex, Galleria, and Apgujeong Rodeo Station on the Suin–Bundang Line.
There was friction during the bidding war. During the opening of bid documents last month, it was revealed that a DL E&C official had filmed Hyundai Engineering & Construction's bid documents with a pen camera, temporarily halting the procedure. The association later received fair-competition pledges from both companies and resumed the process after a legal interpretation by Gangnam District.
DL E&C fronted "ACRO Apgujeong," applying its high-end brand ACRO, and emphasized a shorter construction period, specialized design, and financial support terms, but it was not ultimately chosen.
With this order, Hyundai Engineering & Construction has added Apgujeong District 5 to District 2, secured last year, and District 3, selected as the contractor on the 25th. As a result, it has secured construction rights for three of the six Apgujeong reconstruction districts, or half.
Hyundai Engineering & Construction's cumulative orders for Apgujeong District 2 (2.7488 trillion won), District 3 (5.561 trillion won), and District 5 (1.496 trillion won) total about 9.8 trillion won.
Meanwhile, Samsung C&T has been selected as the contractor for Apgujeong District 4, while Districts 1 and 6 remain in the early stages of development.