Hyundai Engineering & Construction has secured the construction contract for the Apgujeong District 5 reconstruction project, one of the most hotly contested redevelopment sites in Seoul's Gangnam area. With a win at the only Apgujeong redevelopment site where competitive bidding took place, the company further strengthened its control over redevelopment in the Apgujeong area.
According to the redevelopment industry on the 30th, the Apgujeong District 5 Reconstruction and Maintenance Association held a general meeting at Apgujeong High School in Seoul the same day to select a builder and chose Hyundai Engineering & Construction as the final builder.
Of 1,199 association members, 1,016 cast ballots, and 599 voted for Hyundai Engineering & Construction. With a 58.9% vote share, 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 is a project to reconstruct the Hanyang Phase 1 and 2 apartments into a complex of eight buildings with 1,397 units, from five basement levels to 68 aboveground floors. The association's proposed project cost is about 1.496 trillion won.
In terms of sheer scale, it is smaller than Apgujeong Districts 2 through 4, but it drew intense attention from the construction industry as the only Apgujeong redevelopment district to hold a competitive bid.
Hyundai Engineering & Construction put forward the succession of the "Apgujeong Hyundai" brand front and center. It proposed "Apgujeong Hyundai Galleria" as the complex name and, in cooperation with Hanwha, which operates the Galleria Department Store, presented a development plan to link the complex with Galleria and the Suin-Bundang Line's Apgujeong Rodeo Station.
There was also friction during the bidding race. During last month's bid document opening, it was revealed that a DL E&C official filmed Hyundai Engineering & Construction's bid documents with a pen camera, temporarily halting the process. The association then obtained fair-competition pledges from both companies and, after an authoritative interpretation from Gangnam District, resumed the procedure.
DL E&C promoted "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 selected.
With this win, Hyundai Engineering & Construction has added Apgujeong District 5 to Apgujeong District 2, secured last year, and Apgujeong District 3, selected on the 25th as the builder. As a result, the company has secured construction rights for three of the six Apgujeong redevelopment districts, half of the total.
Hyundai Engineering & Construction's cumulative order value, combining Apgujeong District 2 (2.7488 trillion won), Apgujeong District 3 (5.561 trillion won), and Apgujeong District 5 (1.496 trillion won), totals about 9.8 trillion won.
Meanwhile, Samsung C&T has been selected as the builder for Apgujeong District 4, while Districts 1 and 6 remain in the early stages of development.