Wed, Jun 10, 2015 - Page 13 News List

Farglory expects increase in home sales

By Crystal Hsu  /  Staff reporter

Farglory Land Development Co (遠雄建設) yesterday said its sales of new homes might pick up in the second half now that uncertainty over property taxes has settled.

Farglory Land chairman Frank Chao (趙文嘉) made the remark at the Taipei-based developer and builder’s annual general meeting, during which shareholders approved plans to distribute a NT$3.8 cash dividend per common share based on a net profit of NT$5.19 billion (US$165.8 million) last year, or NT$5.99 earnings per share.

Chao offered an apology to shareholders because the results represented a 24.41 percent decline from 2013’s results.

“The situation forward will not be worse than the status quo,” Chao said in reply to questions about the controversial Taipei Dome, a joint development venture between the Farglory Group (遠雄集團) and the city government.

The firm has been engaged in a dispute with the city amid concerns about the dome’s safety.

The underground portions of the site next to the MRT Bannan Line could be finished this month and all the foundations by the end of next month, Farglory Land communications vice president Tsai Chung-i (蔡宗易) said.

Farglory still needs to assure the city government that the dome’s structure is safe to house big sports events and will not pose traffic challenges.

The safety dispute has raised concerns over the health of a NT$15.4 billion syndicated loan covering the construction work.

Mckinney Tsai (蔡友才), chairman of state-run Mega International Commercial Bank (兆豐商銀), the lead bank for the loan, on Monday said the creditor banks have no intention of freezing cashflow given sufficient credit protections.

Farglory also increased its share of the funding from 35 percent to 42 percent, thereby lowering the credit risks, Tsai told members of the Legislative Yuan’s Finance Committee.

The creditor banks have appropriated NT$9 billion, Tsai said.

Chao said Farglory is looking ahead to a rebound in newly completed housing because prospective buyers might want to take action before property gains taxes take effect next year.

Under the new levy, property gains will be subjected to income taxes of 15 percent to 45 percent, depending on how long the property was held by the owner.

Farglory owns NT$10 billion worth of newly completed apartment units and a land inventory valued at NT$20 billion, company officials said.

The company plans to maintain its policy of launching NT$30 billion to NT$40 billion of presale projects a year, the officials said.

Revenue more than doubled to NT$3.02 billion last month from a year earlier, after booking incomes from sales of new office space in New Taipei City’s Sijhih District (汐止), according to a company filing with the Taiwan Stock Exchange.

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