[Edaily Marketin KIM SUNG-SOO Reporter] The “Prima Hotel Site Mixed-Use Development Project” in Cheongdam-dong, Gangnam-gu, Seoul, has successfully transitioned to “trillion-won-scale” project financing (PF).

A total of 1.5 trillion won has been committed for the main PF; the project will proceed initially with the required 1.05 trillion won, with the remaining 450 billion won to be secured at a later date.

The project site is located near “The Penthouse Cheongdam” (PH129), where actors Jang Dong-gun and Ko So-young reside. Furthermore, as it has been designated by the Seoul Metropolitan Government as a “site for a station-area revitalization project” and was also selected in a Seoul City design competition, it is expected to become a “landmark building” in Cheongdam-dong.

Trench A and B, All-in Cost Interest Rate in the “6% Range”

According to the financial investment industry on the 18th, the “Prima Hotel Site Mixed-Use Development Project” is scheduled to disburse 1.05 trillion won out of the total 1.5 trillion won project financing (PF).

A total of 1.5 trillion won has been committed for the main project financing, with the necessary 1.05 trillion won to be disbursed first, followed by the remaining 450 billion won at a later date.

The loan term for the 1.05 trillion won is 56 months (4 years and 8 months) from the disbursement date, and the interest rate is in the 6% range based on the “all-in cost” for Trench A and B.

“All-in cost” refers to a figure that represents the total annual cost burden on the borrower (the person borrowing the money), calculated by adding together the interest rate, handling fees, advisory fees, and other loan-related expenses.

Previously, KB Securities, Samsung Securities, and NH Investment & Securities each reviewed and approved the conversion of this project to a main project finance (PF) structure. The issuance date for the main PF is the 22nd, which coincides with the maturity date of the bridge loan.

A 700 billion won bridge loan has been arranged for this project, which matures on the 22nd. The maturity date of the bridge loan and the schedule for the conversion to the main PF are effectively aligned.

Considering that the loan term is 56 months (4 years and 8 months) from the issuance date, the maturity date of the main PF is expected to be May 22, 2031.

The Cheongdam Prima Hotel development project involves redeveloping the site of the existing Prima Hotel at 52-3 Cheongdam-dong, Gangnam-gu, Seoul. After demolishing the existing hotel, a mixed-use complex combining a 5-star hotel with residential, commercial, and cultural facilities will be built.

The project developer is Shinsegae Cheongdam PFV. The largest shareholder is Shinsegae Property, which holds a 50% stake. As the developer, Shinsegae Property oversees the entire project, from planning and strategy formulation to development.

In addition, Basic General Private Real Estate Investment Trust No. 1 holds a 44.99% stake in the PFV, while Mugunghwa Trust and Mirae Development 3 hold 5% and 0.01% stakes, respectively.

The new building will consist of 8 basement levels and 38 above-ground floors, with a total floor area of 70,000 square meters.

In particular, Shinsegae Property will develop the hotel as “Aman Seoul” in partnership with the global luxury hotel brand Aman. Aman operates hotels in major cities around the world, such as Tokyo and New York, and has established a unique position in the ultra-luxury accommodation market.

“Positive Outlook” for GTX, Wirye-Sinsa Line, and Dongbu Arterial Road, Among Others

Aman is participating in all aspects of the project, including planning, design, and operations. Given that this mixed-use complex—combining a hotel, residential units, and office spaces—is being developed in a prime location in Cheongdam-dong, the project itself holds significant symbolic value.

The project has already completed the permitting process and broken ground. Following approval by the Seoul Metropolitan Government’s architectural review committee in October of last year, it received a building permit in December of the same year and began construction in April. Shinsegae Construction is handling the construction, with a target completion date of 2030.

As this site was selected by the Seoul Metropolitan Government as a “target area for station area revitalization projects” and was also included in the city’s design competition, it is expected to become a “landmark building” in Cheongdam-dong.

In August 2024, the Seoul Metropolitan Government held the 8th Meeting of the Advisory Committee for Station Area Revitalization Projects and selected this area as a new project site. The plan includes introducing tourism and lodging facilities with a floor area ratio (FAR) of at least 50% to secure additional FAR incentives.

The project site (area: 4,730.6 m²) is considered to have an excellent location and significant development potential. It is approximately a 10-minute walk from Cheongdam Station on Subway Line 7 and an 8-minute walk from “The Penthouse Cheongdam” (PH129), an ultra-luxury residential complex, placing it directly adjacent to Cheongdam-dong’s core residential belt.

In particular, the area is regarded as having high future value due to major regional transportation projects planned for the surrounding area centered on Dosan-daero, including the development of the Samsung Station Intermodal Transit Center, the Wirye-Sinsa Line, and the undergrounding of the Dongbu Arterial Road.

The Wirye-Sinsa Line is a 14.8-kilometer light rail line connecting Wirye New Town to Sinsa Station on Subway Line 3. The expedited preliminary feasibility study for the Wirye-Sinsa Line urban rail project was finally approved by the Financial Project Evaluation Committee of the Ministry of Strategy and Finance on March 10.

Currently, the Wirye-Sinsa Line is in the basic planning stage. Once the basic plan is properly finalized and announced, the project will finally move on to on-site work, such as design and construction. In particular, discussions are underway regarding whether to build a new “Cheongdam Intersection Station” on the Wirye-Sinsa Line.

Additionally, the Prima Hotel development site was selected in August 2023 for the Seoul Metropolitan Government’s “Urban and Architectural Creativity and Innovation Design Pilot Project” site competition. The exterior design, created through a collaboration between Heerim Architects & Engineers and ODA, was adopted.

When selected for a Seoul Metropolitan Government design competition, the city waives or relaxes various building regulations to allow for the construction of buildings with creative and original designs. For example, height restrictions may be waived, or the maximum floor area ratio may be relaxed to up to 1.2 times the limit set by the Enforcement Decree of the Act on the Planning and Utilization of Land (National Land Planning Act).

In particular, a cultural and arts information platform and an art pop-up store will be established on the hotel’s lobby level as public contribution facilities. A mixed-use cultural space where local artists, emerging artists, and young entrepreneurs can interact will also be included.