…Songdo has been a financial disappointment for its developer, a venture of U.S. developer Gale International and Posco Engineering & Construction.
The venture has gotten fees and has been able to get back the equity it put into the project, less than $100 million. But other than that, the developer hasn’t earned any profits for the 12 years of work
The developers say the main cause of Songdo’s disappointing financial results is the global financial downturn, which made financing scarce and slowed demand for retail and office space. While Songdo’s condominiums have sold well, about half of the commercial space in Songdo’s gleaming office skyscrapers is empty because the business district has struggled to attract tenants.
…..demand for office space was slower. Gale officials say one of the problems with filling office space all along has been that government incentives have been available for foreign companies but not for domestic companies. That has made it difficult for Songdo to attract law firms, accounting firms and other service companies that the foreign companies need.
“If you don’t have a thriving domestic economy in that area, it’s going to be more difficult to attract international investors,” says Tom Murcott, a Gale executive vice president.
But mayors and government officials in other parts of the country didn’t want their tenants lured away. “Clearly you can’t give such tax favors to each and every company,” says Ryu Young-yong, a director at the Ministry of Trade, Industry and Energy. “It relates to a matter of fairness with other Korean companies operating in other parts of the country.”
Tag Archives: Songdo
To celebrate and raise awareness on the subject of migratory birds and their habitats, EAAFP secretariat held an open event in the G-Tower, Central Park, Songdo. The event started on … read more
Bird News from Spike Millington A flock of Eurasian Curlews and a few Eastern Oystercatchers has been the sum of the shorebird entertainment over the winter at Songdo, so it … read more
Nial Moores PhD, Birds Korea, January 8th 2014 Following on from last month’s article in the Wall Street Journal (http://www.birdskoreablog.org/?p=11510), Birds Korea would like to thank an overseas expert for … read more
Nial Moores PhD, Birds Korea, January 6th 2014 Thanks to a Birds Korea supporter for drawing attention to a piece last month (on December 6th) in the Wall Street Journal, … read more
Bird News from Robin Newlin A morning visit (the first in some years!) to Songdo’s Lagoon. Despite the warm weather, a hint of coming winter: among many of the same … read more
Bird News from Tim Edelsten Tundra Bean Goose Anser serrirostris. An overhead skein of 22. Gadwall Anas strepera. Seven. Eurasian Wigeon Anas penelope. One coming out of eclipse looked distinctively dark in the sunshine. … read more
Bird News from Tim Edelsten The heatwave continues into a third month of temperatures above 30 degrees and 80% humidity. At Songdo, where further chunks of habitat dissapear under construction … read more
Bird News from Spike Millington Growing up in England, hearing the first song of the returning Willow Warblers really meant spring was on the way. Sure Chiffchaffs arrived earlier, but … read more
Bird News from Spike Millington, 25 March. After a fly-by Oriental Stork at lunch on Saturday, I visited the Sorae mudflats at a pretty low high tide in the afternoon … read more