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D-cube City (디큐브시티 신도림)

Development Type: Mixed-use Development

Type Of Developer: Public Sector

Start Year: 2007

Address: 662, Gyeongin-ro, Guro-gu, Seoul, Republic of Korea (08209)

Website: https://www.daesung.co.kr/about/about_4_2.aspx

Contributor: audex

Location

Location Description
D-cude city was developed in a location connected to Sindorim Station. Dorimcheon flows to the northeast, and Anyangcheon flows about 1km away. Since it is a project developed in the industrial zone, there is no downtown in the adjacent block, but the commercial district of Guro Station is also located 1km away. Currently, all the surrounding areas have been developed as residential areas, and the D-cube city serves as a landmark for the area.

Case Report

Introduction

D-cube city is a complex cultural facility completed in 2011 by Daesung Industries. This project was carried out as a part of the development project around Sindorim, which was an industrial zone, and still plays a role as a central commercial and cultural center. In order to develop Sindorim at the time of the construction project, the government expanded the building permit standards by using various policy strategies. In addition, companies were working hard to create residential complexes rather than projects that required large-scale capital. Daesung Industries planned D-cube city with the aim of establishing a landmark of Sindorim and building a commercial complex like Roppongi Hills in Japan. . The companies involved in this project were very popular around the world. Examples include Oikosdesign landscape + architecture (Netherland) and JERDE (USA). Due to the influence of great consultants, D-cube city won awards in the field of urban development or architecture. The reason is that the complex cultural space built in the city center was implemented in a modern way, and the public space was planned and constructed in a form that is comfortable for residents to use by designing a centralized plaza within a limited site. The current D-cube city was mostly acquired by Hyundai Group or sold to Shinhan Financial Investment for reasons of debt repayment and financing. The connectivity to the ecological park was somewhat cut off as the Sindorim subway station was divided into two and built on the ground. As a result, the Sindorim Landmark Project, which was presented during the project planning period, was successfully achieved. People remember Sindorim as a D-cube city, and citizens living in the southwest of Seoul deal with both business and commercial activities at the same time.

Development Info.

Development Scale: Block

Total Development Cost: 1,400,000,000,000 won (67,000,000,000 won for D-cube art center), 2007

Total Land Area: 25756.8 ㎡

Total Development Area: Floor Area: 350051.5 ㎡ , Building Area: 14516.21 ㎡

Area Type: Suburban Area - Business Area

Start Date: 2007/07/04

Opening Date: 2011/08/26

Planning Approval: Sindorim Station Area Special Plan Zone II Block (Daeseong Briquette Site) New Construction (Daeseong D-Cube City Housing Construction Project), 03/09/2006

Lead Developer: Daesung Industrial Co., Ltd. (대성산업)

Consultants: Oikosdesign landscape + architecture(Netherland), SAMOO Architects & Engineers(Korea), JERDE(USA), MORI urban planning corporation(Japan), Hanmi Global(Korea), DOM Architects & Engineers(Korea)

Background

Economic Context

The economic context of the development site was the industrial zone of the suburban. There were factories based on large-scale fossil resources such as tires, briquettes, and automobiles. Among them, the briquette plant was owned by Daesung Industries, the developer of D-cube city. Therefore, they exhibited parts of the then coal plant near Dorimcheon and archived the context of the site. In addition, Daesung Industries, the owner of the development site, took the initiative in making efforts to designate a special development area to the government. As a result, development for the owners began.

Social Context

According to the social context that the government at that time enacted various policies to develop Sindorim area as a huge residential area, the residential population of Sindo Station was expected to increase explosively. D-cube city was required to provide a sufficiently large public space in accordance with this change in social population. Therefore, while maintaining a building-to-land ratio of about 50%, the remaining space of the site was created as a public space through landscaping.

Environmental Context

Dorimcheon was an environmental feature that must be considered in the process of environmental improvement in this project. Dorimcheon was not drained smoothly, so it overflows when it rains, and it was a trouble in the Sindorim area, which usually smells bad. Therefore, it was important to maintain Dorimcheon and develop it as an ecological park. Also, since the road passing through the Dorim-bridge was narrow at the time, the D-cube city project had to obtain an extension of the road from the Seoul Metropolitan Government to secure accessibility. REF) https://urban.seoul.go.kr/view/html/PMNU5020100000#view/618?tr_code=sweb

Historical Context

Started development in Gangnam, Seoul in the 1980s, and started developing around Mok-dong in the 2000s. As an extension of a series of development projects, Sindorim, which can effectively connect Gyeonggi-do and Seoul through transportation, has begun to be spotlighted as a new development point. Therefore, the city of Seoul planned to designate the Sindorim area as a “green area” or “special development activity area” as a policy to proceed in the same procedure as the Gangnam development.

The Plan

Pre-planning Efforts

A Design Proposal for Sindorim Complex Station and Station District(Youngwook Bae), 2005

Vision Statement

Roppongi Hills in Korea, a place where there is more joy, Oasis in the city, Cultural Center where nature and culture coexist (D-cube City Construction business status, Kwangho Park)

Goals and Objectives

Road Width Changes: To improve the traffic system around Sindorim Station by opening a bypass road (10m in width) (connected to the Yeongdeungpo section road) by utilizing some of the existing abandoned railway bridges passing through Sindorim Square and Dorimcheon, To improve three-dimensionally with the underground plaza of the state-owned north side, which is a detailed development plan in the special plan area (Seoul Metropolitan Government Notice 200—435)

Issues and Problems

Funding problem, surrounding road network maintenance problem, usage forecast problem, sale problem

Benchmark Projects

Roppongihills(Japan): https://www.roppongihills.com/ko/about/

Public Engagement Strategy

Does not exist because it is a private business.

Financing Strategy

Daesung Industries created a large amount of debt during the construction of the D-cube city. Although the cost of apartment construction was secured in advance through pre-sale, D-Cube City's commercial facilities tried to relieve the debt from operating profit after construction. As a result, borrowings have exceeded $1 billion. Since then, Daesung Industries raised funds through funding worth 800 million dollars in 2011, when D-Cube City was completed. In addition, they re-funded $300 million in 2015 to settle much of their debt.

Existing Community and Residents

Existing residents welcomed the project. The reason is that there was no separate commercial area in Sindorim that residents could freely use at that time. Instead, Daesung Industries decided to use the northeast site as an outdoor plaza to provide them with an outside green space. Not only are there simple breaks, but public performances are also held here.

Phasing Strategy

This project requested the Seoul Metropolitan Government to change the project while reorganizing the surrounding road network around 2010. In particular, the road network construction project and the housing business were changed every month to adjust the appropriate shape around the area.

The Master Plan

Urban Design: Renovate the access road, install an outdoor plaza in the direction approaching from downtown Seoul, install a department store passage that connects to the apartment, and build at the entrance of Sindorim (to give a strong impression like an entrance) Architecture: A design that can become a landmark, pursuing a modern curvature, a complex architecture on the lower floors of an office building Landscape Design: Naturally connecting the outdoor plaza with Sindorim Station, connecting with the ecological park in the northeast, centralized design with a staircase-like landscape, and a circular walkway connected with eight characters.

Land Uses and Programs

Commercial(Department), Business(Office), Residential(Apartments), Accommodation(Hotel), Cultural(Art Center)

Timeline or Milestones

2005: Conceived and researched the development project in Sindorim area 2006: D-cube city design contract started July 2007: D-cube city development approval Summer 2008: Completion of the access road construction 2010: Road development and housing development approval 5 times 2011: D-cube city open to the public September 2011: Started funding for Daesung Industries 2012: refunding 2015: Large funding, acquired by Hyundai Group 2019: Completed refunding and debt repayment 2020: Sold to Shinhan Financial Investment

Current Status

D-cube city, built by Daesung Industries, has now been sold mostly to Hyundai Group and Shinhan Financial Investment in order to repay the company's debts. The connection between the outdoor plaza and the ecological park planned at the time of development is well maintained. The floating population of Sindorim is effectively managed, and the vacancy rate is relatively low, making it economically stable. However, the view problem of the apartment was not solved.

Lessons Learned

What is the most important take away from this case?

The most important point of this case is that it created a dense center in the southwest of Seoul. It was developed only as a residential area, and the convenience of residents was improved by presenting business districts and commercial facilities of an appropriate size in places where there was a possibility of being out of date. In addition, this fact can be found in that the industrial zone has become a landmark beyond the developmental limitations that can be experienced when it was developed.

Why is this case relevant today and for whom?

This space is currently being used as an effective work space in Sindorim, a key point of transportation. In addition, the district beyond Dorimcheon is being used as planned at the time of design, even though time has passed since large-scale commercial activities do not occur in spaces other than Sindorim. Therefore, small and medium-sized businesses that can enjoy the advantages of transportation at relatively low cost or people living in the southwest of Seoul are getting the most benefit from D-cube city.

Which strategy was proved to be successful?

I think the financing strategy and the phasing strategy worked effectively. Most of the financing strategy is a method of repaying the debt through sale to another company and then buying back the stake, so I think it was effective in repaying large amounts of borrowings in a short period of time. Phasing Strategy It is most effective that there is no policy problem since it was conducted in a manner recommended by the government at each stage. In addition, it can be assumed that it is a very systematically managed strategy because unreported development cases, which are common in many large projects, are not revealed. The approval process at each stage was recorded in public documents, and the project was relatively transparent.

In your opinion, what could have improved this project?

Financial strategy worked very effectively from a short-term perspective, but on the contrary, from a long-term perspective, I think there are some shortcomings. Therefore, this strategy is both effective and needs replenishment. Since Daesung Industries' debts were so large, selling was the smartest option to cover the annual interest increase. However, they still have significant meaning in D-cube city. So, if they want to buy the project again in the future, they are more likely to pay a lot more than what they have to pay now. As a result, if they no longer plan to own the D-cube city, the financing strategy could remain very effective in the short term.

Any other comments?

I think it is worth investing in that it is a building that acts as a landmark in Sindorim. However, since the surrounding green space has not been sufficiently secured, I expect that it will be a more balanced development case if the apartment complex in Sindorim-dong, not this project, is partially greened.

References

OFFLINE Resources and References

A Design Proposal for Sindorim Complex Station and Station District(Youngwook Bae, 배영욱), 2005 Seoul Metropolitan Government Notice 200—435,서울특별시고시 제2009-435호 D-cube City New construction supervision service site tour (Jaemin Jung, 정재민) D-cube City Construction business status (Kwangho Park, 박광호) A Study on the Characteristics and Vitalization Strategy for the Multi-Complex Shopping Mall (Seongsu Cha, Chul Park)

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Contributor audex

audex

AUDEX is an acknowledgement that we need to start building on our own knowledge and experiences that applies to Asian cities and, perhaps, we can steer the global urbanization in the right direction. We believe in a collective intelligence. Powered by the internet and the network of professionals and experts in Asia, we propose to start by making sharing your experience and knowledge easier.