Commercial real estate full-service corporations R Square said on the 11th that it is starting 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 advisory for the sale. Starting this month, it will begin identifying potential buyers and proceeding with the sale.
The Cheongdam Hugel Building at 17, Samseong-ro 133-gil, Gangnam-gu, Seoul, was completed in Jan. 2003. It is an office building with two basement levels and eight 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 three-minute walk from Cheongdam Station and sits in a prime location in Cheongdam-dong with a high-end commercial district and solid business infrastructure. Located in a residential area, it offers excellent utility relative to its site area, and the net area ratio is 64%.
Hugel, a bio corporations, is currently using the entire building but plans to transfer to a new headquarters by the end of this year. Taking advantage of the benefit of a guaranteed 100% vacancy delivery, the buyer can use the entire building as an HQ immediately after purchase, or remodel the lower floors into high-end retail and medical facilities to maximize the capitalization rate (cap rate).