[THE INVESTOR] Savills Korea, the Korean unit of the UK real estate agency, has been named deal broker for Samsung C&T’s building sale worth at least 600 billion won (US$560 million), according to industry sources on March 20.
Savills outpaced several bidders, including two separate consortiums led by Samsung’s security service unit S1 and Samsung Securities, respectively.
Built in December 2007, the 32-story office building is one of the three buildings owned by Samsung companies in Seocho-dong, southern Seoul. The adjacent area is affectionately called “Samsung Town.”
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The building used to accommodate Samsung C&T offices until 2016 but the construction and trading units were relocated to Pangyo in Gyeonggi Province and Jamsil, eastern Seoul. The firm has been seeking to sell the building possibly for liquidity.
Sources say the deal price could soar to hit a record of 730 billion won or 10 million won per square meter due to its favorable location. But Samsung companies are also likely to buy the building for securities reasons as the building is closely linked to other two buildings.
Savills has been expanding its presence in Korea’s prime building deals recently. It is also brokering the 1 trillion won deal of Centropolis, twin office towers in central Seoul due for completion in June, whose key bidders include private equity giant Blackstone.
By Lee Ji-yoon (firstname.lastname@example.org)