Harim Group accelerates logistics park construction project

[Photo by Lee Chung-woo]

South Korean agri-food company Harim Group, which previously attempted to buy the country’s largest container shipping line HMM Co., has shifted its attention back to a construction project that involves building an advanced logistics park with residential zones in Gangnam, southern Seoul.

The project is estimated at 6.8 trillion won ($5.1 billion), including construction expenses.

Eight years ago, Harim Group bought a land site near the Yangjae interchange of the Gyeongbu Expressway and the Gangnam Ring Expressway and has since seen a remarkable increase in land value by more than 1 trillion won.

Harim Group is waiting for approval of the site for a logistics park from the Seoul Metropolitan Government next week.

The project involves building an underground smart logistics facility spanning an area of 86,000 square meters with a floor area ratio of 800 percent. The project also includes the construction of a 58-story residential tower, an office building, a hotel, a department store, and shopping malls above ground. The residential tower, made up of four buildings, will have 998 units.

Around 30 percent of the complex will be available to logistics facilities, with 50 percent to the residential buildings and research labs. The remaining 20 percent will be for shopping zones, including a department store.

Harim Group plans to finance the project through 650 billion won in loans from real estate project financing (PF) institutions and 3.8 trillion won in real-estate sales from the complex, in addition to the 2.3 trillion won in equity capital.

Construction is scheduled to begin next year.