CPC Corp, Taiwan (CPC, 中油) said yesterday it planned to transform one of its pieces of land in Taipei into a commercial complex, as part of the company’s efforts to revitalize its idle assets and increase revenue.
The company said it would start taking applications from interested businesses to develop the 1,251.18m2 (4,128.9 pings) land, located on Chengde Road in Taipei’s Datong District (大同).
The winning bidder will receive a 50-year surface rights lease from the company for the plot of land, which CPC has set a minimum price of NT$276 million (US$9.2 million), or NT$714,200 per ping.
The winning bidder can also rent the land at a fixed rate of 6.25 percent of its total price, CPC said.
However, after 50 years of leasing the land, the bidder cannot bid for another contract, it added.
Bidders are required to make deposits of NT$25 million before joining the auction, which is scheduled to take place by the end of the year, CPC said.
The application submission period will open from today through Sept. 17, it added.
“The winning bidder could construct commercial buildings at the site,” CPC said at a press conference.
The location of the land is surrounded by many historical sites, such as Taipei Confucius Temple and Xiahai City God Temple, which attract millions of tourists every year, CPC said.
It added the winning bidder could therefore also consider operating hotels there to enhance the regional economy and help create job opportunities.
As the Taipei International Flora Expo venue and Zhongshan Soccer Stadium are also near the land, CPC said the winning bidder could consider developing body health examination centers, or hospitals for the pregnant and the elderly to walk and exercise.
The company currently has 7,000m2 of idle land in its pipe line, which it plans to develop into commercial buildings or residential housing in the future, it said.
“This piece of land sits in an ideal place in Datong District especially for hotel owners to run their businesses,” said Jeffrey Huang (黃增福), an assistant manager at Evertrust Rehouse Co (永慶房屋) research and development department.
Commenting on value of the land’s surface rights, Huang said land prices in Datong District are about NT$700,000 per ping (3.3m2).
He forecast that the final price of the land is likely to nearly double.
Huang said this was because “demand for accommodation has been growing at a fast pace and that hotel owners are eager to expand businesses on any piece of land in that district.”