CLSA unveils Neihu commercial complex

CLSA Capital Partners, an asset management arm of CLSA Asia-Pacific Markets, yesterday unveiled Asia Plaza, a NT$7.06 billion (US$212.7 million) commercial complex in Neihu, which is scheduled to be completed in July and start operations in August.

Boasting the largest property development project in the Neihu Technology Park (內湖科技園區) and the biggest foreign investment in Taiwan's property market by far, CLSA Capital Partners hopes to create a new Taipei landmark with Asia Plaza.

The new complex is located at the intersection of Jiuzong Road (舊宗路), Yangguang Street (陽光街) and Ruihu Street (瑞湖街).

"This is just a beginning of many new deals," John Pattar, managing director of CLSA Capital Partners (HK) Ltd, told a press conference yesterday.

The complex occupies 4,265 ping (13,860 m2) of land and consists of three towers with total floor space of 33,000 ping and is the biggest in Neihu District, said Hong Van (雲惟鴻), managing director of CB Richard Ellis Taiwan, property agent for Asia Plaza.

It is hoped the Grade A office buildings will attract local and overseas technology, finance and insurance companies, Van said.

The monthly rent is set at NT$1,300 to NT$1,400 per ping, which is much lower than the price of Grade A office space in Xinyi District, which ranges from NT$2,500 to NT$2,700 per ping, Van said.

CBRE Taiwan has started to lease office space at Asia Plaza, and progress was going well, Van said, adding that the take-up had reached 30 percent.

Vibo Telecom Inc (威寶電信) has reportedly pre-rented Tower B of Asia Plaza, about 8,200 ping of space, but Van refused to confirm, citing confidentiality.

Pattar said that the commercial complex could draw companies from other parts of Taipei, adding that the shortage of Grade A office space in the region was expected to continue over the next three to five years.

The demand for Grade A space comes from Taiwanese companies, many of which have generated more profit on the domestic market or overseas over the past few years and want to expand, Pattar said.

CLSA Capital Partners plans to pump at least US$500 million to US$750 million into the commercial property market in Taipei for the next five to seven years, Pattar said.

"It's an excellent time to enter this marketplace ... we are very positive to the market here," Pattar said.

CLSA Capital Partners also plans to set up a real estate investment trust (REIT) in Taiwan, Pattar said.

The company is now looking into legislation governing REITs in Taiwan and hunting for suitable products, Pattar said, adding that it may include one or two towers of Asia Plaza in the portfolio.

Aside from offices, 2,000 pings of space at Asia Plaza will be used for a food court and shopping facilities, said Fred Chang (張硯斌), senior manager of CBRE Taiwan's retail services.

The facilities can fulfill the need of the tenants, as well as attracting general consumers during holidays, Chang said, declining to reveal the names of retailers who are interested in renting space at Asia Plaza.