A ‘warning light’ was turned on in the logistics center development project, which was called ‘the goose that lays golden eggs’ and ‘logistics lottery’ and caused an investment craze. New construction projects have been halted one after another, and the number of businesses facing bankruptcy due to non-payment of loans is increasing rapidly. This is the result of a combination of high interest rates and overinvestment. There is growing concern that the fire of business insolvency will spread not only to banks and securities, but also to the entire financial sector, including savings banks and capitals, as the total amount of loans from logistics center collateralized project financing (PF) alone amounted to several trillion won.
According to JLL Korea, a global real estate service company on the 20th, it was confirmed that 15 of the 55 new logistics centers with a total floor area of 33,000 square meters (10,000 pyeong) or more that were scheduled to be completed within this year, 15 business sites (27.2%) were delayed, such as construction delays. done. The total floor area of the 15 business sites alone amounts to 1,421,487 square meters (430,000 pyeong). Considering that they borrowed 3.5 million to 4.5 million won per 3.3 square meters for real estate PF, at least 1.9 trillion won or more is in danger of being converted into bad loans. The industry understands that even in distribution centers under 33,000 square meters, there are about 20 places where construction has stopped, and loans amount to several trillion won. The development of the logistics center was spotlighted as a ‘100-fold project’ because it could be started even with a 10% land down payment.
There are two reasons why the logistics center development project, which sucked investment like a black hole, quickly went bankrupt. First of all, construction costs increased by 40% compared to last year due to a rise in raw material prices. Additional loans are needed to complete the project, but financial companies have closed their wallets in a fight. An official from the securities industry said, “The business viability has fallen sharply due to the interest rate hike, making it difficult to obtain additional loans.
Worksites that have been painstakingly completed are also struggling to find tenants. Logistics centers usually fill 80% of tenants after completion, and then sell the whole to recover the investment. However, as the supply of logistics centers has surged in a short period of time, demand has not been able to keep up. Coupang and Market Kurly, the ‘big-handed’ who seemed to buy as soon as they built it, were also affected by recent restraints from expansion. “I can no longer afford to pay an interest of 500 million won a month,” said a representative of a developer company.
By Jang Kang-ho/Kim Woo-seop, staff reporter [email protected]