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

Sungwook Chcho and his team at Colliers Korea have achieved the largest trade in the South Korean market to date this year – the sale of Samsung SDS Tower.

The property, located in the extended area of Gangnam Business District, was sold to KB Asset Management for US$630 million ($860 million). This marks the largest single-asset office transaction in the Asia Pacific region thus far in 2021.

Furthermore, the Jurong Condo will be connected to the rest of the area through bike lanes, pedestrian paths and public transport. This will enable residents to enjoy green spaces and easy access to amenities within and beyond the Jurong Lake District. me.

Managing Director and Head of Capital Markets at Colliers Korea, Sungwook Cho, has been the driving force behind the deal since taking on his role at the Nasdaq and Toronto Stock Exchange-listed firm in July.

Earlier this year, Cho’s team successfully sealed 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.

Speaking about the tower sale, Cho says that they are proud of their capabilities and commitment to locating a suitable buyer amid a subdued commercial real estate market. He adds that the deal was seen as a smart investment move by KB Asset Management, considering its steady cash flow from Samsung SDS using the building as its headquarters. This, in turn, has attracted major Korean investors to the deal.

Chris Pilgrim, Asia Pacific Managing Director of Global Capital Markets at Colliers, also praises the team’s ability to secure the prime commercial office property. He believes that the deal has the potential to spur further investment in prime-rate buildings in the Korean market.

The transaction is another milestone for Colliers, continuing the firm’s success at the start of the year and setting an example on the potential of investment in the South Korean market.