[Edaily Reporter kim mi-kyung ] The Swiss Grand Hotel development project in Hongeun-dong, Seodaemun-gu, Seoul—which had been stalled for several years—is set to resume. This follows the transfer of ownership of the Swiss Grand Hotel building and land to a Project Finance Vehicle (PFV).

According to investment banking (IB) industry sources on the 13th, ownership of the Swiss Grand Hotel building and land was finally transferred last month from Lee Woo-young, Chairman of Dongwon INC, and affiliated companies to “Hongje 353 PFV.” A PFV is a special purpose vehicle (SPC) established for a specific real estate development project.

This project, led by the real estate development consortium Y&J, is reportedly a development initiative to demolish the existing buildings on a site spanning approximately 12,000 pyeong—including the hotel and surrounding lots—and construct a large-scale apartment complex with about 1,300 units along with supporting facilities.

Previously, in early 2020, several developers sought to acquire and develop the Swiss Grand Hotel site, but the project struggled to gain momentum due to difficulties such as the stigma of being property linked to pro-Japanese collaborators and challenges with securing funding.

Industry sources reported that the project, which had been at a standstill, took a turn for the better when KIWOOM Securities(039490)announced it would exclusively provide a bridge loan of approximately 450 billion won to cover the remaining balance for the land purchase and initial project costs. The total cost for the land purchase and initial project expenses is estimated to be between 500 and 600 billion won.

However, industry observers note that variables remain until the actual completion of development, as high-rise apartment development requires approval procedures such as rezoning, and there is a possibility that controversies related to pro-Japanese assets could resurface.

According to a Yonhap News report, KIWOOM Securities stated, “We provided the bridge loan after comprehensively reviewing the project’s viability and collateral value.” The company plans to continue monitoring the project’s progress, including the approval process and the transition to project financing (PF).