[Edaily Marketin KIM SUNG-SOO Reporter] The maturity date for the 640 billion won bridge loan for the development project on the site of the Sampyo Ready-Mix Concrete Plant in Seongsu-dong, Seongdong-gu, Seoul—considered a “prime piece of land”—is just over a month away.

This is a critical juncture for securing funding to turn the blueprint for an “81-story landmark” into reality. As the project gains momentum with the goal of breaking ground next year, the bridge loan maturity on the 14th of next month is expected to be the first major hurdle in securing funding.

Construction of an “81-story residential tower and a 53-story mixed-use office building” on a 28,000-square-meter site

According to the real estate industry on the 2nd, the 640 billion won bridge loan secured by SP Seongsu PFV, which is spearheading the Sampyo site development project, is set to mature on the 14th of next month.

The Sampyo site is a 28,106.2-square-meter plot located at 683 Seongsu-dong 1-ga, Seongdong-gu, Seoul. It is a 21-minute walk from Ttukseom Station on Seoul Subway Line 2 and a 19-minute walk from Seoul Forest Station on the Suin-Bundang Line. Surrounded by Seoul Forest and the Han River, this site has operated as a ready-mix concrete plant for approximately 45 years, since 1977.

However, it emerged as a new strategic site after Sampyo decided to voluntarily demolish the factory in accordance with the Seongsu district development vision proposed by the Seoul Metropolitan Government in 2022. Previously, in March 2023, during a business trip to Europe, Seoul Mayor Oh Se-hoon announced his vision to “develop the Seongsu area, including the Sampyo site, into a global future business district along the Han River.”

The private developer responsible for this area is SP Seongsu PFV. The shareholders of SP Seongsu PFV are Sampyo Industries (95% stake) and NH Investment & Securities (5% stake). The Seoul Metropolitan Government and SP Seongsu PFV have been conducting preliminary negotiations regarding the development of the site.

The project is also gaining momentum in the recent permitting process. At the 13th Seoul City Architecture Committee meeting held on July 28, a plan to construct an 81-story residential tower and a 53-story mixed-use office building on the Sampyo site was approved.

Upon completion, the development will feature 403 residential units, 61 officetel units, and 130 hotel rooms. In addition, office, commercial, and cultural facilities will be built to attract global companies. The vision is to develop the site into a mixed-use urban complex that combines work, residential, and leisure functions, moving beyond simple residential or office development.

Construction on this project is set to begin next year, with completion targeted for 2032. The buildings will incorporate carbon-neutral design and smart building systems to enhance energy efficiency, applying an eco-friendly, low-carbon urban development model.

The lower floors will feature shared spaces and cultural facilities accessible to all citizens. Additionally, a pedestrian green corridor connecting Seoul Forest, the Han River, and Mount Eungbong will be created to restore fragmented urban spaces.

Improvements to the surrounding infrastructure will also be made through public contributions. The Seoul Metropolitan Government plans to utilize approximately 608.1 billion won in public contributions to expand the transportation system and infrastructure for future industries—including the installation of the Yongbi Bridge ramp and the direct ramp at the northern end of Seongsu Bridge, as well as the creation of the Seoul Unicorn Startup Hub.

Bridge Loan of 640 billion won Matures on the 14th of Next Month… Will It Be Converted to Full-Scale Project Financing (

PF)

?

The key issue is raising the funds needed to carry the project through to the actual completion stage. To begin construction, the financing must be converted to full-scale project financing (PF). The 640 billion won bridge loan matures on the 14th

of

next

month

. As of the end of last year, long-term borrowings totaled 520 billion won.

Previously, SP Seongsu PFV had signed a loan agreement totaling 640 billion won with a syndicate of lenders, including the special purpose company (SPC) Maite Seongsu J-Cha, to secure the bridge loan. A total of 221 institutions, including Shinhan Bank, participated in the syndicate.

SP Seongsu PFV also entered into a real estate collateral trust agreement to secure the loan. A real estate collateral trust is a mechanism whereby a property owner transfers ownership of their real estate to a trust company to secure a debt. Under this structure, if the loan cannot be repaid, the trust company can dispose of the real estate to recover the creditors’ claims.

In addition, SP Seongsu PFV provided the lending syndicate with priority profit rights from the project, equivalent to 130% of the agreed amount, as collateral. Furthermore, SP Seongsu PFV is providing common stock (100% ownership) of the company owned by its parent company, Sampyo Industries, as collateral for the loan agreement.

The collateral consists of 15,199,800 shares of SP Seongsu PFV common stock, with a collateral value of 72,936 million won. This amount represents 13.03% of Sampyo Industries’ equity capital of 559,814.82 million won as of the end of 2024.

The Sampyo site development project has attracted market attention as it involves the construction of a large-scale mixed-use complex in the Seongsu-dong area. In particular, expectations for the project’s progress are growing as the development plan—which combines an 81-story residential tower with office, commercial, and cultural facilities—becomes more concrete.

However, given the scale of the project, future financing processes—such as extending the maturity of the bridge loan or transitioning to a full-scale project financing (PF)—are seen as key variables that will determine the project’s pace. It is reported that no decision has yet been made regarding the transition to full-scale PF.

A financial investment industry official stated, “The Sampyo site development project has reached a critical juncture where securing funding to turn the ‘81-story landmark’ blueprint into reality is essential,” adding, “With the goal of breaking ground next year, the maturity of the bridge loan next month is expected to be the first major hurdle.”