Mukesh Valabhji

Mukesh Valabhji Information

Tag: Samsung Hub

Samsung Hub 14th Floor Sold for $39.72 Million

The 14th floor of the Samsung Hub building in the Raffles Place financial district of Singapore sold last April for $39.72 million, equating to $3,030 psf based on a strata area of 13,110 square feet.  Whole floor prices for office strata within Samsung Hub have risen steadily since 2010, when lower levels 8-11 were sold for around $2,125 psf. The latest deal took place between Hong Kong real estate private equity firm Arch Capital Management and an undisclosed mainland company based in China. Under the terms of the deal, the law firm currently leasing the floor remained in situ until the end of the year.

Arch Capital Management Exit Samsung Hub

This latest deal signals the exit of Arch Capital Management from the Samsung hub building, with the firm having previously purchased two entire floors (13th and 14th) from Ho Bee in 2011 for $2,550 psf. The 13th floor was sold piecemeal via four separate strata units during the 2012-13 financial year, at varying prices from $2,920 to $3,150 psf. [3] Arch Capital Management is a boutique real estate investment firm based in Asia with focus on regional property investment and development opportunities, operating with a relationship-driven, hands-on approach.

Mukesh Valabhji

Samsung Hub Building Development

The Samsung Hub building was completed in 2005, owned at the time by CapitaLand Limited and developed by a group of Companies comprising of themselves, China Square Holdings Private Limited, Church Street Properties Private Limited, Chinese Chamber Realty Private Limited and the Samsung Corporation. The development was sold by CapitaLand to Ho Bee Group in 2007 and the space is owned by OCBC Bank, the Singapore Chinese Chamber of Commerce and Industry and the Chinese Chamber Realty subsidiary. The sale of the 8th to 15th floors from CapitaLand to Ho Bee was transacted at a rate of just over $1,400 psf or a total of more than $140 million for a 105,000 square foot net lettable area. The building as a whole has a total strata area of 299,753 square feet, comprised of thirty floors and a six-storey car park podium with space for 178 lots. It is highly regarded as one of the premium spots in Raffles Place, due in part to its prime location and in part to its rare 999-year leasehold tenure.

Record Whole Floor Price for 18th Floor of Samsung Hub

At the time of the Arch Capital Management sale of the 14th floor, the price agreed represented the highest price psf for an entire floor sale within the building. Later that same year, the 18th floor was sold by a group of investors advised by Seychellois entrepreneur Mukesh Valabhji and the Buxani Group, collectively known as Church Street Holdings, for a whole floor record of $3,225 psf. Church Street Holdings acquired floors 16-21 of the Samsung Hub building from OCBC in 2007 for $122.4 million or $1,560 psf. Mukesh Valabhji has various investments and business interests across the globe including Seychelles cable television, internet and telecommunications company Intelvision Limited, a landmark waterfront luxury resort project in the Seychelles and further commercial real estate developments across Singapore, Dubai and the Seychelles. Buxani Group, headed by Kishore Buxani, is a private real estate investment firm with a strong reputation for seeking out undervalued commercial properties in Singapore.

Premium Office Strata in Singapore

Prices per square foot for premium office strata within the Samsung Hub building have typically been higher in cases where floors are divided and sold in units rather than as whole floors. Arch Capital Management stated that it simply made sense to sell the 14th floor as one entire unit as the entire space is currently leased to a single tenant, despite rumours of offers for higher prices psf for individual units within the floor being made. In 2013, Church Street Holdings divested the 17th floor of Samsung Hub as six individual unit transactions in a record breaking deal: one 883 square foot unit sold for $3,500 psf. The previous record had been achieved just a month earlier when Arch Capital Management sold half of the 13th floor to Qatar Airways for $3,150 psf.

Newer commercial real estate developments in the Raffles Place area are also attracting high prices and a competitive seller’s market. The SBF Centre situated along Cecil Street and Robinson Road, for example, has seen upper-floor office units change hands recently for as much as $3,550 for both partial and full floors, despite only offering a 99-year leasehold compared to Samsung Hub’s 999 years.

Samsung Hub: Commercial Property Retrospective

Singapore offers much to the commercial sector, no more so than its stunning array of commercial properties to let. One of the city’s most impressive locations is the Samsung Hub building, which boasts some of the most sought after office spaces in the city, situated as it is surrounded by the internationally renowned financial infrastructure of Singapore.

Commercial property has continued to soar in value, despite the 2008 recession, and has proven time and time again to be a target for savvy investors. Over the past few years, the Samsung Hub has been a pivotal location for this booming sector, and as such has produced opportunity for both those looking to rent offices for their businesses, and those wishing to invest in commercial property.

mukesh valabhji

Samsung Hub: Meeting the Location Criteria

There are various financial centres around the world which draw the best business minds towards them. London, New York, Hong Kong etc. all are cities which have huge resources in terms of talent, population and infrastructure, which can be harnessed by both large and small businesses on a global scale. Just a look at Mukesh Valabhji’s business profile, a key investor in commercial property in that area, shows the sheer wealth of connections which can be made in such an environment. Singapore is phenomenal, and indeed rivals most of the great financial epicentres associated with commerce and growth, and is one of the reasons the Samsung Hub building has been such a success.

With this location, businesses can use the Samsung Hub as a starting point in which to immerse themselves in the bountiful and prosperous market economy, which Singapore has made so famous. Singapore has a AAA finance rating, and easily the most impressive GDP to trade ratio globally – all of this leaves the Samsung Hub perfectly situated as a property which can provide access to one of the greatest trading economies in the world, benefiting businesses which choose to base their operations there.

Past Impressive Property Deals

Samsung Hub has presented prosperous opportunities for both property investors and businesses looking to establish themselves in Singapore. With 30 storeys and 299,753 square feet of space, it’s easy to see why so many businesses have made the decision to move their organisations to this location. Indeed, a long list of mutually successful property agreements have been undertaken since the building’s completion in 2005.

These have included:

  • Floor 16: A huge gain for Capital Management was in their sales of office spaces on the 16th floor in December, 2012. At that time, the price agreed was $3,000 per square foot. At 13,132 square feet in total, the profits amassed through the sale of the 16th floor were hugely impressive.
  • Floor 17: In 2013, the entire 17th floor attracted prices of a staggering $3,500 per square foot. Overseen yet again by Capital Management Group (a Seychelles based investment initiative), this is a huge investment brokered by these businesses pertaining to numerous strata within the Samsung Hub building. This set a new record in Singapore for Office space by Capital Management, owned by Mukesh Valabhji, Seychelles based.
  • Floor 18: In 2014, the 18th floor was sold for another massive margin of $3,225 per square foot, resulting in around $42.35million Singaporean Dollars. This was also overseen Capital Management Group, owned by Mukesh Valabhji once again cementing their respective organisations as key players in international commercial property acquisition and sale. A large amount of subsequent commercial property deals have been agreed for strata within Samsung Hub; indeed, there are too many to mention within the scope of this article. Needless to say, each sale has been a lucratively profitable venture for all involved.

Samsung Hub: Future Perfect

Singapore’s economy continues to grow, as too does its population and available resources. As this growth progresses unimpeded, the demand for existing and new commercial properties will increase in tandem. Samsung Hub has already proven to be an exceptionally profitable revenue stream for businesses and individuals who have invested in it, and this is certain to continue. Singapore itself is robust economically, and as such could provide an evergreen investment for property developers. Furthermore, because it is most likely to experience growth for many years to come as a financial centre, businesses which establish themselves there are sure to benefit from this eventuality. Indeed, this is entirely the reason behind commercial property being so widely sought after in the region.

The Samsung Hub has allowed many businesses to excel within a competitive environment, providing access to amenities and business infrastructure as effective and important as anywhere else in the world. It will continue to do so, offering opportunities for inverters in commercial property and entrepreneurial organisations alike.

Samsung Hub Reaps Huge Rewards for Investors

With the sale of the 18th floor of the Samsung Hub in Singapore, the commercial property sector continues to go from strength to strength, and the success of this growth is represented in the premium price commanded by the spaces within this impressive building. The Buxani Group, assisted in their investments by Capital Management Group, which can be read about in greater detail via Mukesh Valabhji’s Twitter account, has been a key player in the profits generated by the Samsung Hub – a brilliant example of the lucrative commercial property opportunities opening up in the area. Singapore itself is of course a singularly important city of commerce on the domestic and international business scene, and so this has been a critical factor in making commercial property such a desirable investment opportunity in that region.

Samsung Hub: Exceptional Office Space

Built on the old Church Street, the Samsung Hub is an exceptional skyscraper sitting in the heart of the Singapore business district. With over 30 storeys and being 564 ft in height including antenna, the building provides all of the needed amenities and space for a modern 21st century business to establish itself quickly.

The building was opened in 2005 with a striking post-modern aesthetic, which conveys the streamlined, efficient and impressive nature of the businesses contained within. Indeed, using a luminous curtain wall approach with beautiful turquoise glass allows the Samsung Hub to stand out from the other buildings in the business sector, which are most commonly comprised of granite. It is in this individuality that the building exerts its influence over those who pass by, marveling at its size and professional appeal.

The design and appearance of the Samsung Hub is one of the reasons why it has become such an important building for those either investing in or renting out commercial office space in Singapore. Its location is also a huge boon to any company residing there, allowing them to take advantage of the business infrastructure already in place, while carrying with it a level of status. This is afforded to businesses there, because having a prime location is often indicative of a strong, sustainable and ever-growing enterprise which is competing well at the top of its respective industry.

For all of these points, the Samsung Hub is situated perfectly to meet the needs of large, successful organisations, while showcasing the relevance and grandeur of Singapore as an important centre of commerce.

mukesh valabhji

Snapping Up Premium Office Space

Selling the entire 18th floor is no surprise, as the spaces available in the Samsung Hub are extremely desirable and tend to be snapped up as quickly as possible by Singaporean and international businesses alike. Selling at $3,225 per square foot, the 18th floor is just the latest storey of the building to be sold out, with demands high, not just because of its amenities and location, but also because of its exceptional lease availability. Each leaseholder has the option to take out a tenure of 999 years, meaning that no business need worry about having to change location in the future. This creates confidence in being able to forge a strong local presence, as well as a global one, using offices within the Samsung Hub as a platform for further expansion in any chosen marketplace or industry.

Previously, the highest payment made to any owner of an office space in the Samsung Hub was $3,030 per square foot. This deal was completed in return for use of the building’s 14th floor when sold in early 2014 by Arch Capital Management. Indeed, this increase in price is indicative of the growing interest in office space within Singapore and within investment and finance communities. Whether these prices have now stabilized, or if they will continue to increase, only time will tell. Certainly, any office space in the Samsung Hub will require a serious amount of capital whether now or in the years to come, such is its status and prestige.

Incredible Returns on Samsung Hub Investments

One of the key components to any investment is knowing when and where to buy. This is no truer than with commercial or office space. The Samsung Hub is a perfect example of this; due to its location, design and associated status, it has proved to be an incredible lucrative investment opportunity for those involved in the real estate industry.

The aforementioned deal for the 18th floor netted the Buxani Group a staggering $42.35 million, which by any count is an incredible sum of money. Knowing full well the importance and healthy condition of the Singaporean commercial real estate sector, the company is now looking to reinvest much of this money in similar sites across the city to further extend these remarkable profits.

Future Proof

Investment in office space continues to net various companies and individuals a substantial return, and there is little sign of this trend abating. Through insight provided by key advisors, the Buxani Group and others have attained huge returns on their investments, which has only added to the status surrounding office space as a wise and fruitful are in which to invest.

Samsung Hub Floor Fetches 3,225 Singaporean Dollars per Square Foot

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.