Koramco Acquires 'Seongsu-dong Office' Development Project... Embarks on Normalization

[Financial News] Koramco Asset Management announced on the 27th that it has acquired the Seongsu-dong 2-ga office development project, which had pushed Taeyoung Construction into a workout, and will embark on normalizing the business.
This project involves constructing a new office and neighborhood living facilities with a total floor area of approximately 29,400㎡, spanning 6 basement floors to 10 above-ground floors, in the area of 269 Seongsu-dong 2-ga, Seongdong-gu, Seoul. Koramco has set up the 'Koramco Seongsu General Private Equity Fund No. 158' for this development and will play the role of project executor overseeing land acquisition, project planning, construction management, and overall asset management. KCC Construction has been selected as the preferred negotiation partner for the responsible construction contractor, and contract negotiations are underway.
Initially, this site was a project pursued by Taeyoung Construction through a special purpose company (PFV) called Seongsu TS PFV. Taeyoung Construction was to be the largest shareholder, investing in the project cost and handling land acquisition and construction. However, before construction began, Taeyoung Construction declared a workout due to an inability to withstand soaring interest rates and raw material prices during the bridge loan stage, causing the project to drift.
Kim Taewon, Vice President of Koramco Asset Management's Domestic Real Estate Division, said, "This Seongsu office development normalization project will not only restart a stalled site but also become a model case of PF normalization by dramatically enhancing business feasibility through business restructuring." ming@fnnews.com Min-kyung Jeon Reporter