Koramco to Sell 'Hugel Building' in Cheongdam-dong

Koramco Asset Management (Koramco) announced on the 11th that it has selected a consortium of Cushman & Wakefield, Rsquare, and Genstarmate as advisors for the sale of the 'Hugel Building' located in Cheongdam-dong, Gangnam-gu, Seoul, and has officially begun the sale process.

Exterior view of Hugel Building. Provided by Koramco

The Hugel Building is a small to medium-sized office property located near Cheongdam Station on Seoul Subway Line 7. It is currently used exclusively as the headquarters of the bio company Hugel. As Hugel plans to relocate its headquarters within the year, a potential buyer can either immediately occupy the entire building or implement a value-add strategy to increase the asset's value through remodeling. The key aspect of this transaction is that the building can be sold under a condition of 100% vacancy, meaning the entire property will be delivered unoccupied.

Recently, Seoul's office market has seen steady leasing demand focused on core business districts, such as the Gangnam Business District (GBD) and the Yeouido Business District (YBD), even as new supply remains limited. In particular, demand from companies seeking space for direct use in the Gangnam area is increasing, but the supply of small to medium-sized office properties available for immediate occupancy is limited.

Real estate experts analyze that the office investment market is shifting from a focus on simple rental income to emphasizing locational competitiveness and direct usability. Thanks to its prime location, the Hugel Building is expected to attract strong investor interest, as it can be used not only as a corporate headquarters but also for hospital facilities or high-end remodeling for various purposes.

A Koramco Asset Management representative stated, "The Hugel Building is an asset located in a prime area of Gangnam and can be immediately utilized after the property is vacated, which aligns with current market demand. We expect a wide range of investment demand, from end-users seeking direct occupancy to investors pursuing value-add strategies."

This content was produced with the assistance of AI translation services.