CPI opens NT$9.2 billion commercial complex in Neihu

Citi Property Investors (CPI) Asia Pacific yesterday opened a NT$9.2 billion (US$283 million) commercial complex known as the Asia Plaza (亞太經貿廣場) in Taipei's Neihu District, vowing to reach a 70 percent lease-out rate by April from the current 50 percent.

"With half of the three-building complex's 27,000-ping [89,256m2] already rented out, we are aiming to reach a 70 percent take-up rate in March or April," Hong Van (雲惟鴻), managing director of CB Richard Ellis Ltd (CBRE, 世邦魏理世), which manages leasing at the CPI-owned complex, told a media briefing yesterday after the opening ceremony.

The building's rental rates range from NT$1,300 to NT$1,400 per ping with a contract of three to five years, which is slightly lower than the better-located Liberty Square's (自由廣場) asking price of between NT$1,800 and NT$2,000 per ping, Van said.

Shying away from a question on what the final return rate will be for CPI if the complex is fully leased out, Van said only that "the plaza's yield rate is attractive."

The complex's tenants include technology companies and financial institutions such as AIG, Compal Communications Inc (華寶科技) and motorcycle maker Harley Davidson.

At yesterday's opening ceremony, CPI vowed to promote the plaza, which has a 2,000-ping recreational space, as a commercial and lifestyle landmark in the greater Taipei area.

"To further enhance its lifestyle appeal, we are working closely with various parties to offer tenants a variety of retail options, including luxury cars, spas, health centers and a gourmet plaza," David Schaefer, head of CPI's Asia Pacific investments, said at yesterday's opening.

Compared with other property markets, Taiwan may be relatively small, but it is still "attractive," with CPI having closed two of its largest deals with a total value of NT$14.5 billion in Taiwan, Schaefer said.

CPI executive vice president Aron Chan (詹偉立) said that CPI had no plan to tap into sub-markets other than the commercial property market in Taiwan, although it did not rule out forming joint ventures with local developers to explore business opportunities.