Samsung C&T is in discussions with IGIS Asset Management to provide an anchor lease commitment for the redevelopment of Metro Tower and Seoullo Tower in Seoul’s CBD, a highly unusual step for the construction giant in its home market.

This would mark Samsung C&T’s first such lease guarantee in Seoul since it committed to a similar structure for the Sampyeong-dong office project in Bundang, scheduled for completion in 2027.

IGIS is currently arranging ₩1.95 trillion of project financing (PF) to advance the Metro–Seoullo redevelopment, which will be integrated with its adjacent Hilton Hotel redevelopment. NH Investment & Securities, Shinhan Investment, and Daishin Securities are acting as joint arrangers.

The PF structure is split into four tranches:

• Tranche A (₩1.45 trillion): syndicated to banks and insurers.

• Tranche B (₩292 billion): half underwritten by the lead securities firms.

• Tranche C (₩140 billion): participation from existing bridge loan lenders.

• Tranche D (₩68 billion): divided between Daishin (₩48 billion) and Shinhan (₩20 billion).

IGIS aims to close before its current bridge loan matures on September 15, though the final timing may shift.

Samsung C&T is both builder and equity investor in the project. Through YD816 PFV, the project vehicle, Samsung has injected ₩600 million in equity, plus ₩80 billion into the development fund, giving it a 25.9% stake.

Yet with construction costs surpassing ₩50 million per pyeong, questions had lingered over whether Samsung would maintain its role as contractor.

By weighing an anchor lease, Samsung is signaling determination to see the project through. Such a guarantee is highly supportive for lenders, reducing perceived vacancy risk and enhancing exit liquidity. In effect, it strengthens IGIS’s hand in securing the massive PF package.

Samsung last deployed this strategy in Bundang’s Sampyeong-dong, where it agreed to lease half of the office building developed by Mirae Asset Maps No. 65 fund, backed by the Local Government Officials’ Pension and NCSoft.

That commitment was pivotal in enabling Mirae Asset to raise ₩780 billion in PF loans in March 2023. The 1.8 million sq. ft. complex is due for completion in 2027.

Market watchers note, however, that the Metro–Seoullo case is far riskier. Unlike the Bundang deal, which had strong sponsorship from a major pension fund and robust tenant demand from IT corporates, the Seoul CBD faces a looming oversupply pipeline over the next five years. Rental prospects are less certain, while project costs remain elevated.

Against this backdrop, Samsung C&T’s willingness to provide an anchor lease suggests not only a commitment to the project’s success, but also a calculated bet on IGIS’s ability to deliver one of the CBD’s most ambitious redevelopments.