The large-scale mixed-use development project, Champions City, located on the site of the former Jeonnam Textile and Ilshin Textile factories, is set to contribute 589.9 billion won ($589.9 million) in public contributions and donate three additional bridges connecting to areas outside the project zone. The city of Gwangju is currently conducting a review of urban management plans and is moving forward with the installation of the bridges based on the results of a traffic impact assessment.
According to the construction industry and the Gwangju Integrated Special City on July 27, the plan for the installation of the bridges, which will connect areas outside the project zone, is progressing separately from the 589.9 billion won public contribution agreed upon in the development project.
A representative from Gwangju Integrated Special City stated, "In addition to the 589.9 billion won public contribution agreed upon for the Champions City development, we are also pursuing the installation of bridges. We are currently conducting a review of urban management plans and will decide on the bridge installation as urban planning facilities in the subsequent review process."
According to the city, the additional installations will include three bridges connecting to areas outside the project zone, two of which are planned for vehicle traffic. These facilities are separate from the roads and mixed-use facilities included in the existing public contribution agreement. It is reported that the additional donations were requested during the traffic impact assessment process to disperse the increased traffic expected from the development project.
Champions City is a large-scale mixed-use development project initiated by a consortium of Shin Young Group and Woomee Construction, which purchased the site of the former Jeonnam Textile and Ilshin Textile factories in July 2020. The project combines residential, commercial, office, and cultural functions, with the first phase of construction and sales for a total of 3,216 housing units set to begin in September.
The developer plans to pay the agreed-upon 589.9 billion won public contribution as scheduled. The public contribution consists of 300 billion won in cash and 289.9 billion won in kind, including the construction of roads. As the first and second residential complexes and the third luxury hotel and historical park are constructed sequentially, 10% of the cash public contribution will be paid over four years, with the remaining 60% due upon project completion.
A representative from Shin Young Group stated, "The plan to pay 10% of the cash public contribution over four years and the remaining 60% upon completion remains unchanged. Once the first residential complex begins construction as scheduled, we plan to pay the first public contribution of approximately 15.4 billion won within one month of receiving the construction permit."
Champions City was initially delayed after Daewoo Engineering & Construction and POSCO E&C were selected as preferred bidders but subsequently withdrew from the project. The schedule resumed after Woomee Construction, a shareholder in the project financing vehicle, took over the construction.
The developer is currently selecting a construction company for the second residential complex and the third luxury hotel. A representative from Shin Young Group noted, "We plan to proceed separately from the first phase and will finalize the schedule for the next projects after observing the results of the first phase sales."
Following the establishment of a semiconductor cluster in the Honam region, there are reports of improved conditions in the Gwangju housing market. A representative from the housing sales industry commented, "Since the designation of the semiconductor cluster, contracts for unsold units have increased, indicating a better market atmosphere than before, although polarization remains between well-located new constructions and others."
They added, "Champions City, being a large complex with over 3,200 units, may face initial sales pressure, but we believe it can be absorbed adequately if supplied sequentially. The volume of supply and the sale prices will be key factors in its success."
Meanwhile, the model house for 'Champions City Phase 1' is set to open on the project site in September.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.