Sat, Feb 03, 2007 - Page 11 News List

Xinyi purchase bolsters Sinyi Real Estate share price


Shares of Sinyi Real Estate Inc (信義房屋) rose yesterday after the company announced the purchase of a building for use as its headquarters in Taipei's Xinyi District (信義) from passive component supplier Yageo Corp (國巨) at NT$4.995 billion (US$151.8 million).

Shares of Sinyi, the nation's largest housing agent, surged 6.8 percent to close at NT$91 on the Taiwan Stock Exchange.

Shares of Yageo, which produces electrical parts that control electricity flow in computers and handsets, climbed 0.35 percent to NT$14.30 yesterday.

Investors welcomed news of the building sale, which was expected to add NT$0.34 to Yageo's earnings per share in the first quarter of this year.

In a filing with the stock exchange late on Thursday, Sinyi said that the purchase of the building next to the world's tallest skyscraper, Taipei 101, would help the company "become a model in providing property brokerage services in the Greater China region by 2012."

The company's headquarters are currently located on Dunhua S Road Sec 2. The company did not say when it would move to the new building.

Besides moving its headquarters, Sinyi will rent extra office space in the new building to other companies, the Chinese-language Commercial Times reported yesterday, citing Howard Chou (周莊雲), an associate manager at Sinyi.

The Chinese-language Economic Daily News carried a similar report yesterday. Both reports said the return was expected to be 4 percent to 4.5 percent, which would contribute at least NT$60 million to its income per year, citing Chou.

The 14-story building, with a floor area of 23,678m2 on a land parcel of 3,459m2, was purchased by Yageo for its headquarters in 1998.

Yageo rents out extra space to the Taiwan High Speed Rail Corp (台灣高鐵) for its headquarters, Yageo said in a filing with the stock exchange.

Following the building's sale to Sinyi, Yageo said it would focus on core business and create more shareholder value.

The company said it would earn NT$700 million from the deal, the statement read.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top