State-owned Taiwan Tobacco and Liquor Corp’s (TTL, 台灣菸酒公司) proposed development project in New Taipei City (新北市), which may generate a NT$1.24 billion (US$42.58 million) premium for the company, has attracted a great deal of interest from local insurance and construction firms.
The project — which covers a 727.07 ping (2,403.53m2) plot of state-owned land in New Banciao Special District (新板特區) — is just 300m away from Banciao Station.
It will be the company’s first development project in cooperation with the private sector.
“The Banciao project has been drawing warm public response,” TTL president Lin Tzann-feng (林讚峰) told reporters on the sidelines of a press conference about the project.
More than 60 investors — including Fubon Life Insurance Co (富邦人壽), Shin Kong Life Insurance Co (新光人壽), Cathay Life Insurance Co (國泰人壽) and other insurance companies as well as construction firms such as Huang Hsiang Construction Co (皇翔建設) and Lih Pao Construction Co (麗寶建設) — attended the press conference.
The company is scheduled to announce details of the project in the middle of next month, with interested investors having until the end of January next year to put in a bid.
The company is to sign a contract with the winning bidder by the end of March next year at the earliest. TTL will grant the winner a 50-year lease, with a one-time contract renewal period of 30 years.
The winning bidder will be allowed to develop the land for commercial use only, TTL said, adding that the land is appropriate for a shopping and entertainment complex, a wedding banquet hall, a health evaluation center or corporate headquarters. However, it does not meet the requirements to be developed as a hotel, the company said.
The winning bidder has to pay a one-time fee for the superficies rights and an annual rent over the 50-year lease, TTL said. Based on the preliminary evaluation, the one-time option premium for the project may total NT$1.24 billion, in line with the current assessed value of the land.
The winner is expected to spend another NT$1.3 to NT$1.8 billion developing the site.
International real-estate consultancy firm Colliers International, which is a consultant on the project, was optimistic the project would be successful, since the plot of land is one of just a few that has not been developed.
TTL said it might launch three other development projects following Banciao, in Taipei, Miaoli County and Hualien County.