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Taipei Financial Center may expand Taipei 101 retail

Taipei Financial Center Corp (台北金融大樓公司), owner of the world's tallest building, may consider selling NT$5 billion (US$160 million) in shares to bolster revenue by expanding the amount of retail space at the tower.

The company may sell shares through a rights offer or seek to tap outside investors, said Michael Liu (劉家豪), a company spokesman. Average retail rents at the 101-story building are NT$7,000 per ping (US$68 a square meter), more than double the average rent for the tower's offices.

"The size of any capital increase, if approved, would depend on whether the borrowing rate at that time is favorable or not," Liu said yesterday by phone. "We may raise the funds internally or seek outside investors."

The building, which opened in 2001, will start making a profit in three to five years, Liu said.

Taipei Financial Center also wants to expand the building's observatory deck and may open the 88th floor to the public, giving visitors a better view of the hanging ball that stabilizes the tower, Liu said.

The expansion proposal will be discussed by the board at a meeting on March 7.

"The breakeven point was set at a time frame of six to eight years from completion," Liu said. "That target hasn't been changed."

Liu rejected a report in the Chinese-language Commercial Times that Taipei Financial Center plans to write down the value of its capital by half because of losses. The report did not cite sources.

Major shareholders include China Development Industrial Bank (中華開發工銀), China United Trust & Investment Corp (中聯信託) and Chunghwa Telecom Co (中華電信).
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