UPDATE: Portman Joins Development of Tallest Southeast Asia Building

Officials of locally based Portman Consortium and Incheon Metropolitan City Mayor Sang-Soo Ahn on Monday signed a memorandum of understanding to participate in the development of the massive development, a master-planned 1,500 acres of reclaimed land from the Yellow Sea in Songdo, South Korea. An Incheon Free Economic Zone (IFEZ), the land is part of a new suburb on the eastern side of Incheon.

At a media event held at Atlanta's World Trade Club, officials said more than 2.9 million square meters of multi-use space will be developed at an estimated cost of more than $11 billion, on a phased basis. The preliminary vision for the project, located in District Six and Eight of Songdo, is a multi-use development, one of the three areas in IFEZ inside the Incheon Metropolitan City limit.

As GlobeSt.com reported last year, New Songdo City is slated to include 125 million sf of new development on 1,500 acres in Incheon, a western suburb of Seoul that sits on the Yellow Sea. It will include 50 million sf of office space, 30 million sf of residential space, 10 million sf of retail, five million sf of hotel space and 230 acres of public space.

Portman CEO John C. Portman, whose firm will be lead developer of the consortium, which will include a number of Korean companies, said the 1,500-acre site, "is one and a half times the size" of New York City's Central Park. Portman went on to say that the centerpiece of the concept plan is the 151-story Incheon Tower, which will include offices, hotel, retail and housing. The planned structure, officials indicated, will be the tallest in Northeast Asia. It also will be one of the project's primary early challenges, noted Portman.

"The financing, tenant and technical challenges will be among our biggest," Portman said. "But we agreed as a group on a strategy of how to go about that, and we're beginning right away." Portman, however, declined from discussing any impending strategy.

Portman said Mayor Ahn wanted the building to make a statement. "He suggested that there needed to be a very tall building there," Portman said. "He threw out the number 150. After I caught my breath, I told him that was a good idea," Portman laughed. But the mayor had more in mind. "He said 150 stories doesn't sound so good; 151 sounds a lot better."

The development will be a planned, integrated community, featuring upscale office, commercial and residential structures, in addition to a number of specialty developments, including cultural facilities, a marina and other urban buildings. With the adjacent International Business district, currently under development by New Songdo City Development, LLC, the development is expected to become the landmark of IFEZ, as well as a world-class hub city.

The project is particularly important in light of increasing global competition, said Portman. "In the last 40 years, South Korea has made greater advancements in the growth of its colony then maybe any country in history," he said. "Today, their competition is China. This project gives them identity. It has enough land--mainly reclaimed land--to grow new urban structures and to create a new city on the water, adjacent to the airport." Portman said the cost of living will be comparable if not better than that in China.

Discussions are under way for the Portman Consortium to include Hyundai Engineering & Construction Co. and other major construction companies to build the project. According to terms of the agreement, a comprehensive plan will be presented to the Incheon government within six months. Estimated completion is in 2010.

The agreement to develop the project was signed by Portman with the City of Incheon, South Korea, at the luncheon. Participants included Incheon Mayor Sang-Hoo Ahn; Jack Portman, vice chairman of Portman Holdings; Jun Hun, executive vice president of Hyundai Engineering & Construction Co., LTD; and Youngshin Sung, managing partner of SYM & Associates Inc.