The Island Castle resort in Uijeongbu, which was abandoned for 7 years, was awarded successfully to a new owner at its 6th bid.
According to related persons, Island Castle’s final bid price on the 22nd was KRW 44.11 billion. It is an accomplishment after five consecutive failed efforts to sell the resort since November 2014. The initial appraisal value of the Resort is KRW 260 billion, which was down to one-sixths level of the appraisal value. Upper Street Investment is known as the winner of the bid.
Island Castle is a Urban-Type of resort with 531 condo rooms, 101 hotel rooms and a waterpark, totaling a gross area of 122,000m2, completed on November 2009. Since the construction company executed its lien-right of retention on the resort due to its outstanding, unpaid construction cost worth KRW 125 billion, the project drifted for 7 years.
Along with US Army site, Island Castle is expected to contribute to the tourism industry in Uijeongbu, now that is has found its new owner. While Uijeongbu city has endeavored to step up as a tourist city, its concerns have increased as Island Castle was abandoned for a long period of 7 years.
The construction company was able to collect part of its construction cost, having consistently requested around KRW 58 billion.
Chang Dong Lee, senior analyst from GG Auction, said “the Resort found its new owner without any serious legal conflicts, and within 1 year and 6 months, which is quite quick for its size. “
Source:
Island Castle Uijeongbu is auctioned off at KRW 44.1 bn…New owner in 7 years.
22nd June 2016. Money Today
