Macquarie Korea Infrastructure Fund
Assets
The Seoul East Underground Expressway Project (the “SEUE Project”) is a two-phase project pursued by Seoul Metropolitan City (“SMC”) to improve traffic flow in heavily congested sections of the existing aboveground Seoul East Expressway (“SEE”), expand user base by making a direct connection to the Gangnam area, and repurpose certain parts of SEE to build an environment-friendly space. The first phase of the SEUE Project encompasses constructing a 12.2km, dual two-lane underground expressway connecting Seokgwan-dong of Seongbuk-gu and Daechi-dong of Gangnam-gu. Of the first phase, a 10.1km section connecting Seokgwan-dong of Seongbuk-gu and Samseong-dong of Ganganam-gu is the private investment part of the SEUE Project. The private investment part of the SEUE Project is a build-transfer-operate type concession project with an expected construction period of 60 months followed by a 30-year operating period.
MKIF committed to invest KRW 214.8 billion in East Seoul Underpass Co., Ltd., the concessionaire of the SEUE private investment project. MKIF will acquire KRW 35.5 billion of equity, KRW 94.8 billion of subordinated loan, and up to KRW 20 billion of conditional junior subordinated loan of the concessionaire during the construction period. After operation is commenced, MKIF will invest KRW 64.5 billion to acquire additional 12.4% equity of the concessionaire. After all investments are made, MKIF will have 40% of equity shareholding (KRW 100 billion), 40% of subordinated loan (KRW 94.8 billion) and 40% of conditional junior subordinated loan (up to KRW 20 billion) of the concessionaire.
| Concession agreement | |
| Government authority | Seoul Metropolitan City |
| Concession term | 30 years from operation commencement date |
| Facilities | |
| Length | 10.1 km |
| Capacity | Dual two-lane |
