[Edaily Marketin KIM SUNG-SOO Reporter] An office development project in Pangyo’s Third Techno Valley is set to be completed in December 2028.

The Third Techno Valley is being developed as a large-scale business and industrial cluster centered on the artificial intelligence (AI) semiconductor industry. Once completed, it is expected to serve as a catalyst for the expansion of the Pangyo business district beyond the existing Pangyo area to include the Geumto District.

Creating a High-Tech Hub Centered on AI Semiconductors

According to the real estate industry on the 27th, the developer Pangyo Seven is proceeding with the “Seongnam Geumto District Third Pangyo Techno Valley Office Development Project.”

This project involves the construction and sale of new office buildings and neighborhood amenities in Self-Sufficient Block 7-3 (BL) of the Seongnam Geumto District, located at 273-3 Geumto-dong, Sujeong-gu, Seongnam-si, Gyeonggi-do. The buildings will consist of 5 basement levels and 10 above-ground floors (building height: 42.54 m), comprising two buildings with a total floor area of approximately 76,135 square meters (about 23,000 pyeong).

The project developer is Pangyo Seven (Pangyo 7). Pangyo 7 has entrusted all rights related to the implementation, management, and disposition of the project site to Korea Land Trust under a managed land trust arrangement.

A management-type land trust is a real estate development trust model in which a trust company assumes the role of the developer (building owner) to manage the project, while the settlor or the general contractor directly handles financing. POSCO E&C is responsible for construction, which began last January.

Previously, Pangyo 7 secured a total loan of 395 billion won in accordance with the loan agreement. Hanwha Investment & Securities is serving as the lead underwriter. The loan consists of △ Tranche A: 320 billion won, △ Tranche B: 28 billion won, and △ Tranche C: 47 billion won. In terms of priority for collateral claims and repayment, Tranches A through C have priority in that order. The loan maturity date is April 3, 2029.

Pangyo Techno Valley No. 3, where this complex is being built, is a high-tech mixed-use complex with a total floor area of approximately 440,000 square meters, located on a site of about 60,000 square meters within the Seongnam Geumto Public Housing District. The project is being jointly developed by a consortium of the Gyeonggi Housing and Urban Development Corporation (GH) and Hyundai Engineering & Construction, with a total project cost of 2.2 trillion won.

No Resale or Business Type Restrictions… Investment Demand ‘Drawing Attention’

The site will feature a knowledge industry center, as well as office facilities, commercial spaces, dormitories, and research institutes. Construction on the entire development is set to begin in the second half of next year, with completion targeted for 2031. Move-ins are scheduled to begin in the second half of 2031.

The Third Techno Valley is drawing particular attention because it is being developed as a “key hub leading the global artificial intelligence (AI) semiconductor industry.” While the existing Pangyo Techno Valley grew primarily around IT, gaming, and platform companies, the Third Techno Valley is expected to focus on attracting companies in high-tech industries, including AI semiconductors.

In particular, the project will focus on building a high-tech industry cluster centered on fabless companies (firms specializing in semiconductor design without their own production lines), system semiconductors, gaming, and AI.

From an investor’s perspective, regulations are a key point to watch. The Third Pangyo Techno Valley is not subject to resale restrictions or business type restrictions. In contrast, Pangyo’s First Techno Valley was subject to a 10-year resale restriction following completion, while the Second Techno Valley had a 5-year resale restriction period.

Compared to the existing First and Second Techno Valleys, the Third Techno Valley allows for relatively freer asset transactions and permits the establishment of businesses across a wide range of industries. This is expected to have a positive impact on securing future investment and leasing demand.

A real estate industry official stated, “If large-scale funding is secured, the development of the Third Pangyo Techno Valley is expected to gain further momentum,” adding, “As business, research, and commercial facilities centered on the AI semiconductor industry converge in one location, this will serve as a catalyst for the Pangyo business district to expand beyond the existing Pangyo area to include the Geumto District.”