Hanwha Construction Division announced on the 21st that it signed a “Memorandum of Understanding (MOU) for Joint Promotion of Real Estate Development Projects” with Mastern Investment Management at Hanwha Building in Jung-gu, Seoul, on the 20th.

Attending the signing ceremony were Yoon Sung-ho, Head of the Development Business Division, and Park Kyung-bae, Head of Domestic Division 1 at Mastern Investment Management.

The agreement was pursued to move beyond the existing construction-focused business structure and establish a business model that combines finance and development. The two companies plan to jointly promote real estate development projects by expanding their scope of cooperation from discovering new projects to establishing joint corporations.

The two parties will build a cooperative framework across the entire process, from initial project planning to post-completion operation. Based on its planning, design, and construction capabilities, Hanwha Construction Division will be responsible for designing the project structure through pre-construction (Pre-Construction) services that review business feasibility in advance, while Mastern Investment Management will be in charge of investor recruitment, financing, investment structure design, and risk management.

Through this, the two companies expect to establish an integrated decision-making system that manages both profitability and risk from the early stages of a project.

Amid growing uncertainty in the project financing (PF) market, this is interpreted as a strategy to enhance project stability through collaboration with financial institutions. It is also seen as an effort to expand the business domain from a construction-centered structure to the broader field of development projects.

On the back of this agreement, Hanwha Construction Division plans to secure a stable development project pipeline and continuously discover new business opportunities by expanding its cooperative network with financial institutions.

Yoon Sung-ho, Head of the Development Business Division at Hanwha Construction Division, said, “By combining finance and construction, we will further strengthen competitiveness in development projects and establish a stable business structure.”

Park Kyung-bae, CEO of Mastern Investment Management, said, “The combined expertise of the two companies is expected to create strong business synergies.”

Meanwhile, Hanwha Construction Division plans to sequentially expand agreements with major financial institutions such as securities firms and asset management companies in the future.

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