Daewoo E&C celebrates privatization with top title as redevelopment builder

Paju Prugio Serenus. [Photo byDaewoo E&C ]

Daewoo Engineering & Construction Co. can celebrate a full privatization this month through the award of a housing redevelopment project worth 578.3 billion won ($486.2 million) in Paju, Gyeonggi Province to become top builder of redevelopment projects this year.

The company announced Tuesday that it was named the builder for the Paju 1-3 zone redevelopment project. It will be in charge of constructing 37 apartment buildings that have 25 floors above ground and three underground, each, to provide 3,278 houses in total, commercial and subsidiary facilities on a 190,146-square-meter area.

The project is valued at 578.3 billion won, the biggest order that Daewoo E&C has won this year. The apartment complex will be branded Paju Prugio Serenus.

Daewoo E&C has obtained 10 housing reconstruction projects worth 2.74 trillion won so far this year, topping the redevelopment order book.

The company said it is expected to win additional four redevelopment projects and achieve the largest-ever order exceeding 3 trillion won this year.

The company is finally divorced from public fund as its smaller peer Jungheung Construction is due to complete due diligence for Daewoo E&C by the middle of this month. Jungheung said it will soon sign a stock purchase agreement within the month with KDB Investment, the majority shareholder of Daewoo E&C, unless there are any particulars such as contingent liabilities or insolvency.

Daewoo E&C posted 421.7 billion won in operating profit as of the end of June, up 108.7 percent from the same period last year, with sales up 5 percent to 4.15 trillion won.

Jungheung said it will support independent management of Daewoo E&C even after the acquisition to maximize their synergy effect. The takeover would help the mid-sized builder become No.3 player in the Korean construction industry following Samsung C&T and Hyundai Engineering & Construction.

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