Wed, Sep 11, 2013 - Page 13 News List

Elitegroup to sell headquarters in Neihu District

By Crystal Hsu  /  Staff reporter

Elitegroup Computer Systems Co (精英電腦), a major PC motherboard maker, plans to sell its headquarters in Taipei’s Neihu District (內湖) next month, auction organizer Jones Lang LaSalle Taiwan (仲量聯行) said.

With 20 stories aboveground and four basement floors, the building has a total floor space of 16,000 ping (52,893m2) and an asking price of about NT$7 billion (US$235.22 million), Jones Lang LaSalle Taiwan managing director Tony Chao (趙正義) said.

The building sits on a plot of land measuring 1,595.97 ping and should attract high bids at the auction on Oct. 21, Chao said.

Chao attributed his optimism to Elitegroup’s plan to lease the office building from the winning bidder for the next 10 years, which could bring in more than NT$20 million in rent per year.

That would render the office building the only property in Taipei able to generate a rental yield above 2,875, the minimum required yield on property investments by life insurance companies, Chao said.

Domestic life insurance companies, which had been barred from real-estate investments until recently, may show a keen interest in the office building located in a technology cluster, Chao said.

About 10 prospective buyers at home and abroad have made inquiries about the building, which has a book value of NT$3.08 billion.

Demand for office buildings in popular locations may remain strong thanks to favorable policy measures to facilitate the return of Taiwanese companies overseas, Chao said.

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