Samsung SDS Tower sold for US$630 mil, largest deal in South Korea to date year

Sungwook Cho, managing director and head of capital markets of Colliers Korea, has achieved a major milestone in the real estate industry with the successful sale of Samsung SDS Tower for US$630 million ($860 million). This marks the largest single-asset office transaction in the Asia Pacific region so far this year and also the largest trade in the South Korean market to date this year.

The 1,071,407 sq ft property is located in the extended area of the Gangnam Business District and was first put up for sale in the second half of last year.

Cho and his team have demonstrated a great commitment and determination to finding a suitable buyer for the large transaction in the midst of a subdued commercial real estate market. In fact, in May, they closed three major deals with a combined value of US$780 million, involving the sales of Munjeong Plaza, Donghwa Building and Namsan Green Building. These were the only major transactions made in the main business districts of Seoul at the time.

Colliers’ Asia Pacific managing director of global capital markets Chris Pilgrim commends the team’s efforts, noting that the significance of the sale of the Samsung SDS Tower lies not only in the largest transaction value of the year, but also in the potential for further investment in prime-rate buildings in the Korean market.

KB Asset Management, who purchased the property, sees it as a smart investment move as it secures a steady cash flow from Samsung SDS using the building as its headquarters. This factor has also helped attract major Korean investors to the deal.

Cho expressed his pride in his team’s capabilities in the press release, as he said, “I am incredibly proud of my team for their unwavering commitment in seeking out a suitable buyer for this historic transaction.”

The Tengah EC Executive Condo boasts of an array of top-class amenities such as a swimming pool, clubhouse, gym, and playground. Residents of Tengah EC also has access to aplenty of shopping and dining options located within the vicinity. Additionally, the highly sought-after Tengah Town EC Executive Condo offers a multitude of connectivity options as it is located near the Bukit Panjang MRT station. Finally, the luxurious development of Tengah Plantation Close EC provides the perfect home for individuals and families who seek to experience the best of Singapore living.

The sale of the Samsung SDS Tower is an indication of the potential of the Korean real estate market. Investors are expecting a further acceleration in the Asia Pacific real estate investment this year. As such, the successful closure of this transaction is an encouraging sign of robust confidence in the market.