Vantaa Aviapolis SeminarSeptember 1, 2017

Tom MurcottGale International

Site Development Begins Completion of Dikes

Completion of 1st Terminal

Commence Runway Dev

ICN Grand Opening Second Stage Construction

1992 1994 1996

2000 2001 2008

Incheon International Airport (ICN) Development Timeline

Phase 1: 1992-200111-million sqm LandUS$ 5-billion

Phase 2: 2002-20089.5-million sqm LandUS$ 5-billion

Phase 3: 2009-20171.1-million sqm LandUS$ 4.4-billion

ICN Completed Projects -- YeongJong Island

Since 2001 US$ 3.6 Billion Airport City Investment

Area Size(000㎡)

Investment(US$mil.)

Status

IBC-I 1st Phase 165 598 ▪ Hotel (3), Office (4), Hospital (1), Retail (1)

2nd Phase 330 1,399 ▪ Paradise City Construction (Open in ‘17.4)

IBC-III 2,674 1,393 ▪ Inspire Integrated Resort (Open in ’20.)

South Water Basin 151 74 ▪Motorboat Racing, Hotel (1)

Others 3,931 192 ▪ Golf Course, BMW Driving Center

Total 7,251 3,656

Motorboat Racing BMW Driving CenterParadise City Resort

Incheon International Airport (ICN) Development Timeline

ICN PAX Creation 2.9 Million/year

Transfer Pax Creation : 550 thousand/yr

Revenue Creation: US$127-million/yr

Aeronautical Revenue US$80-million/yr

Job Creation 18,000/yr (Yeongjong Only)

Airport Amenity Benefits

Paradise City Resort and Casino

Inspire Integrated Resort

Korea Free Economic Zones

Planned Population

Area

265,000

53.3 km2 (13,170 acres)

Greater Songdo(International Business Complex)

Seoul

Incheon

Seoul Yeouido

Seoul Gangnam

Incheon Free Economic Zone

2003: Created as Korea’s 1st FEZ

650,000: Planned Population

36.4 Trillion KRW ($35 Billion USD): Public Infrastructure Investment In Greater Songdo

Yeongjong(Airport, Tourism & Logistics)

Planned Population

Area

295,000

98.4 km2 (24,315 acres)

Cheongna(Sports & Leisure Complex)

Planned Population

Area

90,000

17.8 km2 (4,398 acres)

Songdo IBD

Planned Population

Area

75,000

5.9 km2 (1,500 acres)

Incheon International Airport

Songdo IBD: Placemaking in the 21st Century

Songdo 2001

History of Songdo IBDGenesis of Incheon Free Economic Zone

2004

2005

2002

Songdo 2016

History of Songdo IBDGenesis of Incheon Free Economic Zone

Partnership to-date: Songdo IBD

History of Songdo IBDProcess of City Development

Vision Planning Design Build

International Team Behind Songdo IBD

Songdo IBD Overview

• Master Planned International CityOffice Space: 3.7 M m2

Residential: 3.3 M m2

Retail: 1.0 M m2

Hotel: 0.5 M m2

Public Space: 1.0 M m2

Total Building Area (GFA): 9.5 M m2

• LEED Certified; designed to be one of the world’s most sustainable cities –LEED = 2.1 M m2

• 1st Cisco Smart+Connected Community

• 100+ buildings completed or under construction = 5.8 M m2

2

1

3

10

11

45

7

6

8

9

History of Songdo IBD

2001 Gale International invited to tour Project Site by City of Incheon

2002 Joint venture formed with POSCO Engineering and Construction

2003 Master plan completed

2004 Songdo Development groundbreaking

2009 Songdo Convensia opens. Phase I commercial and residential projects open

2010 Chadwick International School, Jack Nicklaus Golf Club Korea open

2012 Selected as host city of GCF Secretariat

2014 Residential units sold in Songdo IBD footprint passes 14,000 mark

2015 Surpasses 5.8 million sqm of GFA (residential, commercial, civic)

Host city of PGA Tour 2015 Presidents Cup

2016 Greater Songdo pop. surpasses 100,000

Investors/Occupiers in Greater Songdo

Investment Environment

Sustainable Infrastructure – Waste, Water, Energy

Pneumatic waste removal system

District co-generation plant Seawater canal

Chadwick InternationalSchool Songdo

Sheraton Incheon

Sustainable Community – LEED Development

Songdo ConvensiA

Xi HarborviewNEATT Tower(LEED Silver)

The # Central Park II

The# HarborviewThe # Central Park I

First LEED Certified Exhibit Hall in Asia

First LEED Certified Residential Tower in Korea

First LEED Certified Hotel in Korea

First LEED Certified School in Korea

LEED-Neighborhood Development approval in process

22 million sf -- 117 LEED-certified buildings

Int’l Business Sq.(LEED Gold)

Jack Nicklaus Golf Club Korea Clubhouse

Infrastructure, Technology, and Sustainability

Innovation Ecosystem: U.Life Solutions

UrbanTech: City-wide Integrated Operations Center, Connected Transportation, Masterbell Services

Innovation Ecosystem: Technology Partners

SparkLabs IOT Accelerator Nov. 2014 Partnership Agreement to develop

“smart city” solutions in Songdo IBD Development of “Internet of Things”

ecosystem in Songdo Songdo provides ideal environment in which to

design, develop, test, and implement new IOT solutions

SparkLabs: well-known tech accelerator with growing roster of successful start-ups.

Higher Education Platform: Universities in IFEZ

Incheon Global CampusCompleted in 2012

Campus GFA: 650,850 ㎡ (7 million SF)

Number of Schools: 10 (Int’l Campuses of Foreign Universities;

Undergraduate & Graduate Schools)

10,000-12,000 students expected

Schools Open & OperatingState University of New York (SUNY + FIT)

George Mason University

University of Utah

Ghent Univ. (Belgium)

Multi-Complex for all IGC Universities Common Library

Sports and Aquatic Complex

Faculty & Student Housing

Theater

Student Activity Center

21,000 Students in Domestic Universities Yonesi Songdo Campus

University of Incheon

Catholic University of Korea

Inha University

Hongik University

Hankuk University

Biopharma & Biotech in IFEZ

Dedicated Bio Cluster in SongdoSamsung/Quintiles JV announced 2011

Samsung Bioepis

Two manufacturing facilities ($1.1 billion investment)

Third facility underway ($730 million investment)

IFEZ spurred growth with tax and land incentives for Korea &

International JV’s in pharma sector

Korea’s Advantages for Pharma ManufacturingHighly educated workforce

Global recognition of clinical trial results

Developed IT Infrastructure

Air and sea cargo hub: Incheon International Airport and seaport

Unparalleled live, work, learn, play environment for skilled workers

and families

Dramatic Growth of Biopharma/BiotechKorea’s biopharma sector production growth: 9%/yr.

2014-2015 annual exports: $589m -> $809m 37% increase

Songdo projected to be largest exporter of biosimilars by 2019

250,000 new industry sector jobs.

Songdo Central Park

• 101-acre oasis in the heart of Songdo IBD

• Modeled on New York’s Central Park

• Hosts public events benefiting Songdo and greater Incheon communities

• a navigable seawater canal system with water taxis and water sports activities.

• Korean cultural and architectural elements.

• Daily destination for air and cruise ship passengers

Songdo Central Park

Regional and Global Awareness

• Jack Nicklaus Golf Club Korea – 2015 Presidents Cup

– Multiple Senior PGA Events

– Korean & Asian Tour Events

– 2018 UL International Crown (LPGA)

• Pop Culture and Advertising – PSY Gangnam Style

– Multiple Ad Campaigns

– K-Drama Location Tours

• PR and Global Press Coverage– International TV/Online/Web

– Advent of Social Media

– International model for smart, sustainable

• Pro and Con

Northeast Asia Trade TowerQuality of Life Is Crucial

Places and spaces are mere vessels.

People make a city.

The human experience powers

all great urban centers.

Songdo Today: A Thriving City

Thank You

Vantaa Aviapolis SeminarSeptember 1, 2017

Tom MurcottGale International

tmurcott@galeintl.com