▶ Leasing structure anchored by Samsung affiliates ensures stable cash flow immediately post-acquisition
▶ Equipped with higher power infrastructure compared to standard offices; valued as a tailored asset for high-power industries like IT and finance
▶ Coexistence of repurposing potential (senior housing, officetels) and large-scale redevelopment tailwinds in Mok-dong
It is rare for a single office asset spanning a gross floor area (GFA) of over 10,000 pyeong to be brought to the market in Seoul.
RSQUARE (CEO: Lee Yong-gyun), a comprehensive commercial real estate service firm, announced on the 17th that it has been selected as the exclusive marketing broker for the sale of the 'Samsung Fire Service Building' located in Mok-dong, Yangcheon-gu, Seoul, currently held by Kendall Square Asset Management.
The Samsung Fire Service Building is an office property with a gross floor area of 34,597.86 $m^2$ (approx. 10,465 pyeong), featuring 6 underground floors and 18 above-ground floors, and is situated in a core location within the Mok-dong Central Business District.
The primary investment driver for this asset is the securing of a highly stable cash flow. With Samsung Fire Service and other Samsung affiliates making up the core tenant profile, an investor can expect long-term and resilient cash flows from the exact point of acquisition.
Secondly, its power infrastructure serves as a major strength. The asset boasts a significantly higher electrical power capacity compared to standard office buildings of a similar scale—a technical specification that fully accommodates the requirements of finance, IT, and broadcasting/telecommunications sectors operating large-scale server rooms or high-spec hardware.
The potential for mid-to-long-term value appreciation is also substantial. While stable operations are underpinned by solid rental income, the asset concurrently possesses the structural flexibility to be repurposed into senior housing or high-end officetels in the future. This dual layout allows investors to target both stable yield preservation and additional capital gains via redevelopment.
On top of its inherent locational advantages, the property is backed by robust surrounding development tailwinds. Nearby initiatives include the redevelopment of the Mok-dong CBS site and the KT Mok-dong Tower, alongside the integrated development of the Mok-dong Stadium and retention basin area. Coupled with the massive reconstruction projects across 14 apartment complexes in the Mok-dong New Town area and the repurposing of the Korea Arts & Culture Center, the macroeconomic conditions are perfectly aligned to lift overall asset values throughout the entire district.
"The Mok-dong Samsung Fire Service Building is a rare large-scale asset within Seoul's major submarkets that simultaneously satisfies two critical investment criteria: stable lease income and capital appreciation," stated Ho-jun Lee, Head of the Investment Advisory Division at RSQUARE. "We anticipate exceptionally high interest from both domestic and international institutional investors."
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▶ Leasing structure anchored by Samsung affiliates ensures stable cash flow immediately post-acquisition
▶ Equipped with higher power infrastructure compared to standard offices; valued as a tailored asset for high-power industries like IT and finance
▶ Coexistence of repurposing potential (senior housing, officetels) and large-scale redevelopment tailwinds in Mok-dong
It is rare for a single office asset spanning a gross floor area (GFA) of over 10,000 pyeong to be brought to the market in Seoul.
RSQUARE (CEO: Lee Yong-gyun), a comprehensive commercial real estate service firm, announced on the 17th that it has been selected as the exclusive marketing broker for the sale of the 'Samsung Fire Service Building' located in Mok-dong, Yangcheon-gu, Seoul, currently held by Kendall Square Asset Management.
The Samsung Fire Service Building is an office property with a gross floor area of 34,597.86 $m^2$ (approx. 10,465 pyeong), featuring 6 underground floors and 18 above-ground floors, and is situated in a core location within the Mok-dong Central Business District.
The primary investment driver for this asset is the securing of a highly stable cash flow. With Samsung Fire Service and other Samsung affiliates making up the core tenant profile, an investor can expect long-term and resilient cash flows from the exact point of acquisition.
Secondly, its power infrastructure serves as a major strength. The asset boasts a significantly higher electrical power capacity compared to standard office buildings of a similar scale—a technical specification that fully accommodates the requirements of finance, IT, and broadcasting/telecommunications sectors operating large-scale server rooms or high-spec hardware.
The potential for mid-to-long-term value appreciation is also substantial. While stable operations are underpinned by solid rental income, the asset concurrently possesses the structural flexibility to be repurposed into senior housing or high-end officetels in the future. This dual layout allows investors to target both stable yield preservation and additional capital gains via redevelopment.
On top of its inherent locational advantages, the property is backed by robust surrounding development tailwinds. Nearby initiatives include the redevelopment of the Mok-dong CBS site and the KT Mok-dong Tower, alongside the integrated development of the Mok-dong Stadium and retention basin area. Coupled with the massive reconstruction projects across 14 apartment complexes in the Mok-dong New Town area and the repurposing of the Korea Arts & Culture Center, the macroeconomic conditions are perfectly aligned to lift overall asset values throughout the entire district.
"The Mok-dong Samsung Fire Service Building is a rare large-scale asset within Seoul's major submarkets that simultaneously satisfies two critical investment criteria: stable lease income and capital appreciation," stated Ho-jun Lee, Head of the Investment Advisory Division at RSQUARE. "We anticipate exceptionally high interest from both domestic and international institutional investors."