Six strata units on Level 18 of the Samsung Hub have been bought by an Asian-based business group. It is reported that the new owners do not plan to sublet the 13,132 square foot office space, but rather to occupy it themselves.

The S$3,225 per square foot sale price is the highest achieved to date for a whole floor in the 30 storey office block. The Samsung Hub, located in Church Street in Singapore’s Raffles Place area, is popular amongst commercial investors because of the site’s long tenure of 999 year leasehold. The per square foot price of S$3,225 far exceeded the S$3,030 per square foot price achieved earlier this year when the whole of the building’s 14th Floor was sold by Arch Capital Management.

CBRE brokered the sale of the 18th Floor with Cushman and Wakefield also advising Church Street Holdings, the sellers. Church Street Holdings Mukesh Valabhji of Capital Management Group of the Seychelles and Buxani Group. When approached by the press, Kishore Buxani, Buxani Group CEO, confirmed the sale, commenting that Buxani Group’s holdings in Samsung Hub have represented an excellent long-term investment for the company. Mr Buxani indicated that Buxani Group had been approached by a number of agents with several attractive, unsolicited offers. Buxani Group reviewed those offers under the guidance of independent advisors. Mr Buxani indicated that he will be looking to reinvest the proceeds in other opportunities in the Singapore commercial real estate market, and has hopes of the company achieving even higher returns. Mukeshis also a Member of the Advisory Board of Crimson Investment, Board member of SoftBank Princeville Investments,as well as owner of the Intelvision.

Church Street Holdings acquired a total of six office floors in the Samsung Hub: Levels 16 to 21. They purchased the property in 2007, in a deal with OCBC which was worth S$122,400,000. The price achieved for each square foot was S$1,560 which, with their recent sale of the 18th Floor, amounts to a profit in sale price in excess of 100% on a 7 year investment, not to mention intervening rental income.

The Samsung Hub, which was previously known as 3 Church Street, is situated in the central business district of Singapore. It is a skyscraper, and is located next door to the famous Prudential Building. The Samsung Hub has thirty storeys. It is an office building development which includes a six storey podium block on a 35,000 square metre plot of land. The Samsung Hub is a freehold Grade A office tower.

Construction of the Samsung Hub was completed in 2005. The firms involved in the building’s construction included Church Street Properties Private Limited, China Square Holdings Private Limited, Samsung Corporation, CapitaLand Limited and Chinese Chamber Realty Private Limited. The tower block was formerly owned by CapitaLand, but the development was soon purchased by the Ho Bee Group.

Because of its recent completion in 2005, the building’s architectural design is largely post-modern, the construction being mostly built from steel and glass. The Samsung Hub was constructed from high quality materials including double-glazed, heat-strengthened, tortoise-tinted glass which was applied during construction. The elegant, light structure and its luminous curtain-wall system creates a distinct and deliberate modern contrast with its monolithic granite and glass neighbours.

Commercial property is becoming a popular and lucrative investment in countries such as the United Kingdom. Overseas investors are quickly catching up with United Kingdom institutions as the biggest category of commercial property owners in the United Kingdom equity market. Over half of the offices in the City of London are owned by overseas investors, according to the Development Securities’ 2012 report entitled “Who Owns the City”.

Mukesh Valabhji

Two thirds of commercial property in central London is rented and rental income increased steadily in each of the last three years. The majority of the capital invested in commercial property in the United Kingdom is by pension and savings plan providers. Investment in commercial property represents almost 5% of the staggering £2.5 trillion figure invested by pension funds and insurance companies. A substantial area of growth has been in ownership of commercial property by collective investment schemes such as limited partnerships, property unit trusts, etc.

Commercial property is a sector which makes up a major part of the economy in the United Kingdom. It is also a platform for almost all of the country’s major industries. Investment in commercial property is a sector which plays a pivotal role in providing places where people can shop, work and spend their free time pursuing leisure activities. The commercial property sector is a significant contributor to the retirement finance industry and is a higher contributor to the economy of the United Kingdom than communications, banking, transport and leisure. Commercial property is primarily composed of the core sectors such as industrial (factories and warehousing), office and retail. Leisure parks, pubs, garages, hotels, petrol stations and cinemas are also regarded as commercial property. It is a key factor of production in the United Kingdom and the industry is almost as large as the country’s plant, vehicle and machinery sectors.

Check out our latest post to see how much the Samsung Hub 14th Floor sold for.