R Square, a commercial real estate comprehensive service corporations, said on the 11th that it has begun the sale of the Cheongdam Hugel Building owned by Koramco Asset Management. R Square will form a three-company consortium with Cushman & Wakefield and GenstarMate to jointly handle the sale advisory. Starting this month, it will begin sourcing potential buyers and carrying out the sale process.
The Cheongdam Hugel Building at 17, Samseong-ro 133-gil, Gangnam-gu, Seoul, was completed in Jan. 2003. It is an office building with 2 basement floors and 8 above-ground floors, with a site area of 803.8㎡ (about 243 pyeong) and a total floor area of 4,307.5㎡ (about 1,303 pyeong). It is a 3-minute walk from Cheongdam Station and sits in a prime location in Cheongdam-dong with a luxury commercial district and solid business infrastructure. Located in a residential area, it offers excellent utilization relative to the site area, and the exclusive use ratio is 64%.
Hugel, a bio corporations, currently occupies the entire building but plans to transfer to a new headquarters at the end of this year. Capitalizing on the advantage of guaranteed 100% vacancy clearance, the buyer can fully use the entire building as its headquarters (HQ) immediately after purchase, or remodel the lower floors into high-end retail and medical facilities to maximize the capitalization rate (cap rate).