Yuanta Asset Management Co (元大國際資產), a subsidiary of Yuanta Financial Holding Co (元大金控), yesterday sold an office building in downtown Taipei to Taiwan Life Insurance Co (台灣人壽) for NT$3.05 billion (US$103.4 million), both companies said in separate stock filings.
That was 12.86 percent lower than the asking price a month earlier.
The 18-floor building on Jianguo N Road Sec 2 failed to attract any bidders in an auction that was held late last month, when it was priced at NT$3.5 billion and tied to office space in buildings in less-popular locations.
The sale of the 27-year-old building, which Yuanta Asset acquired from Mercuries Life Insurance Co (三商美邦人壽保險) three years ago, would still generate NT$719 million in property gains, the filings said.
The price cut would give Taiwan Life Insurance more leeway to meet tighter requirements on real-estate investment by life insurers, which must bear returns of 2.125 percent, up from the previous 1.875 percent.
The Financial Supervisory Commission raised the threshold to improve profitability for life insurers and curb property speculation.
With 4,729 ping (15,605m2) in floor space and located on a 574 ping plot of land, the building is fully occupied.
Separately, Taiwan Life said in another stock exchange filing that its board approved a proposal to raise about NT$1.35 billion from shares to shore up the company’s finances.
The board approved an issue price of 75 million new common shares at NT$18 a share, implying a 6.98 percent discount from the company’s closing share price of NT$19.35 yesterday on the Taiwan Stock Exchange.
Original shareholders and employees will subscribe to 75 percent and 15 percent of the new shares respectively, leaving only 10 percent to be raised from the open market, the filing said.