Daehan Real Estate Trust is a leader
in urban improvement projects with a proven track record


  • 2016

    First trust company selected as sole implementer of urban renewal project

  • 8 projects

    Completed the largest number of urban improvement projects in the real estate trust industry

  • 12,693 units

    Project orders as of the end
    of July 2024

  • 19 projects

    Ongoing projects as
    of August 2024

Overview

What is trust-based urban improvement project?

A trust-based urban improvement project refers to a project method where Daehan Real Estate Trust swiftly, transparently, and professionally handles all tasks from funding to operation when carrying out reconstruction or redevelopment projects in areas that need urban function restoration or have poor living environments, in compliance with procedures stipulated by the "Act on the Improvement of Urban Areas and Residential Environments."


Urban Regeneration Project

Urban Improvement Project
  • Reconstruction
  • Redevelopment
  • Residential Environment Improvement Project
  • City Block Housing Improvement Project
  • Small-scale Reconstruction

Business Structure

Project Implementer Workflow for a Trust-based Urban Improvement Project

Project Agent Workflow for a Trust-based Urban Improvement Project

Advantages

  • Swift executing of projects
    • Eliminates factors that may delay the project caused by conflicts between association members
    • Omits decision-making procedures for association promotion committees and various meetings
  • Project funding
    • Funds 100% of project costs through the trustee
    • Provides funding for cash settlements (purchase requests), relocation costs, etc.
    • Facilitates participation of small and medium-sized construction companies in urban renewal projects, normalizing small-scale renewal projects and revitalizing the market
  • Professional project management
    • Strengthens project management functions by leveraging the trustee's real estate development expertise
    • Protects the interests of association members (beneficiaries) with transparent business operations by trustees

    ※ Project is carried out under the trustee's responsibility as per the "Trust Act," regulations applied to financial investment businesses as per the "Financial Investment Services and Capital Markets Act," and management and supervision by financial supervisory authorities

  • Stability of projects
    • Secures the stability of projects by reducing accident rates in trust development, leading to cost reduction and protection of association members' interests
    • Accident rates for land trust projects, which are very low at 4.58%, are much lower than for overall housing projects at 12.18%

Comparing accident rates by principle project entity

(Unit: cases)

Principle
Project Entity		 Total No.
of Projects		 No. of Incidents by Type Incident
Rate
Construction
Delay		 Move-in
Delay		 Project
Insolvency		 Construction
Company Insolvency		 Total
General 1,015 8 33 3 123 167 16.45%
Trust 284 2 5 - 6 13 4.58%
Construction 724 6 20 17 16 59 8.15%
Association 170 1 6 10 11 28 16.47%
Overall 2,193 17 64 30 156 267 12.18%
  • ※ Source: "A Study on the Impact of Real Estate Trust Business on Financial Market and Housing Market Stability" (April 2012, Korean Business Management Association 'Corporate Management Research' Vol. 19, No. 2)
  • ※ Comparison Table Criteria
  • 1) The sample is based on housing sales project guarantee certificates issued by Korea Housing and Urban Guarantee Corporation for each project entity from 2007 to 2011 (total 2,193 projects)
  • 2) Classification by principle project entity: General developers, Trust companies, Construction companies (top 10 companies as of 2009), Associations (redevelopment/reconstruction)