Urban Upcycling signs MOU with Uzbekistan's Urgench District to develop new town

Urban Upcycling Cooperative, a South Korean firm specializing in urban regeneration and public rental housing, is moving to enter the Central Asian new town development market through a partnership with a local government in Uzbekistan.

The cooperative announced Friday that it has signed a preliminary cooperation memorandum of understanding with the Urgench District of Uzbekistan's Khorezm Province to pursue a mixed-residential complex development project spanning 13 hectares.

The partnership goes beyond a simple pre-sale apartment development by exploring a public rental housing model through a public-private-people cooperative structure. The cooperative plans to draw on South Korea's experience in urban regeneration, social housing and cooperative-style rental housing management to propose development solutions tailored to local residential stability needs.

The discussions gained momentum at a Korea-Uzbekistan economic cooperation forum held in the Uzbek capital Tashkent from June 16 to 18. On the sidelines of the forum, Jeong In-hee, head of Urban Upcycling Cooperative, met with A. Kurbanniyazov, deputy district mayor for investment affairs of Urgench District, to discuss the possibility of joining the mixed-residential complex development and options for supplying public rental housing.

The Uzbek government has identified raising urbanization rates in regional cities and stabilizing housing for lower-income residents as key priorities under its national development strategy through 2030. Against that backdrop, South Korean companies have been mentioned as potential participants in a new town development model combining pre-sale housing with public rental units.

The project site is a new town settlement that Urgench District is developing as part of its urbanization drive. According to the master plan approved by the district, the total site area is 13 hectares — about 39,000 pyeong, where 1 pyeong equals 3.3 square meters. The plan envisions developing 44 residential lots centered on mid-rise apartment buildings of up to nine stories.

Of those, 25 lots have reportedly been secured by local developers and are already in the pre-sale and construction pipeline. The remaining 19 lots are currently open for public tender. Urban Upcycling Cooperative is reviewing the possibility of participating either as a sole investor or through a consortium of South Korean companies, based on detailed master plan materials provided by the Uzbek side.

The development centers on a public rental housing model structured around a P-P-P framework — Public, Private and People (residents and cooperatives). Under the proposed arrangement, Urgench District and the Uzbek government would provide land, permits and financial support, while a South Korean consortium would contribute capital and handle design, construction and operations. Local residents and cooperatives would participate in needs assessment, community management and long-term rental administration.

The cooperative believes this approach could expand affordable housing infrastructure while reducing the fiscal burden on the Uzbek government. For South Korean companies, it also offers the prospect of building a long-term rental operation model spanning 20 to 30 years, rather than limiting returns to short-term pre-sale proceeds.

Incorporating a cooperative-style model — in which residents participate in managing the residential community rather than remaining passive tenants — could also improve local housing management systems. Industry observers note that if the project proceeds, it could expand to other regions of Uzbekistan as well as neighboring Central Asian countries including Kazakhstan, Kyrgyzstan and Tajikistan.

In an official letter to Jeong, Deputy District Mayor Kurbanniyazov said: "If your company is interested in participating in the mixed residential complex development project within this planned city, we can provide additional information and relevant materials regarding the land and investment opportunities currently available. We look forward to building a mutually beneficial cooperative relationship and hope to proceed with further discussions at a time convenient for your company."

An official at Urban Upcycling Cooperative said the agreement marks "a first step in applying South Korea's urban regeneration and public rental housing management experience to new town development in Central Asia," adding that the cooperative plans to continue working-level consultations with the local government to finalize the project structure, investment approach and the proportion of public rental housing.