쌍용건설

Dailian (07/06/2016)

- Solid financials hopeful in procuring new contracts for second half

Ssangyong E&C procured two urban renewal projects worth a record 258.6 billion won.
On the 5th of this month, Ssangyong E&C announced that during the first half of the FY (Jan.~Jun.), it procured residential renovation and residential redevelopment projects in Seoul’s Jungrang-gu and Gwangju’s Seo-gu, respectively, totaling 258.6 billion won. Compared to the approximately 400 billion won the company procured last year, the figures are clearly impressive.
Ssangyong E&C’s procurement this past May for the Myeonmok District 6 Residential Renovation Project is located in 1405 Myeonmok 4-dong, and will consist of five 15-story apartments with 3 underground levels, housing 237 units. The project will cost 53.6 million won.

Jungrang-gu, where the complex is located, has a dense population with a high rate of outdated residential buildings, and demand for housing is very high. Ssangyong further lowered potential non-sales by developing smaller 20 and 30 pyeong (66m2 and 99m2) units, and the site is situated in a preferred real estate region, which can mean high returns in future real estate markets. The complex will commence construction next July and is slated for completion in the second half of 2019.

The Yangdong District 3 Residential Redevelopment Project procured in April, located in Gwangju, S. Jeolla Province, is worth an estimated 205 billion won. The project is Ssangyong’s first large scale redevelopment project for the year, and consists of constructing twelve 29-story apartments with 2 underground levels housing a total of 1179 units at 301 Yang-dong. After management disposal permission issuance in the latter half of next year, construction will commence latter 2018 and finish in 2021.

A Ssangyong E&C representative stated “After undergoing a corporate rehabilitation proceeding, we sought for projects that guaranteed commercial viability in stable locations, considering our financial structuring as well,” and also continued with, “instead of overstretching ourselves with procurements, we’re going to focus on win-win strategies that can maximize profits for the second half of the year.”

With Investment Corporation Dubai (ICD) becoming the new majority shareholder of Ssangyong E&C last March, the company’s financials are solid with zero debt, resulting in no incurring interest expenses.
The Housing & Urban Guarantee Corporation, Construction Guarantee, & Engineering Guarantee Insurance helped guarantee the project, and with the improved HUG credit rating past May from BBB+ to A+ made the project more procurable.
The representative said, “Our proven construction capabilities together with a solid financial standing is yielding profitable business results,” and “going forward we will focus on procuring more renovation and redevelopment projects in capital and other metropolitan areas with favorable real estate values.