Taiwan Life Insurance Co (台灣人壽保險), the life insurance arm of CTBC Financial Holding Co (中信金控), yesterday announced plans to partner with Japan’s Mitsui Fudosan Co (三井不動產) to develop a shopping mall in Taipei’s Nangang District (南港).
The two sides agreed to introduce Japanese shopping mall brand Lalaport as part of a greater development project.
Taiwan Life acquired a 45-year superfices right from Taiwan Fertilizer Co (台肥) for NT$15.03 billion (US$478,9 million) in September last year to turn the land into mixed-use commercial space, which is also to include a five-star hotel, grade-A office space and entertainment and recreational facilities.
“It will cost Taiwan Life NT$40 billion to develop the land, with the construction to cost NT$25 billion,” a company communications official said by telephone.
Lalaport is to be the second shopping mall brand Mitsui operates in Taiwan after Mitsui Outlet Park in New Taipei City’s Linkou District (林口), which started operations in January last year.
There are 16 Lalaport malls in Japan, Taiwan Life said.
The investment could generate 5 percent returns in rental income per year, the official said, greater than the average of 2 to 2.5 percent for real estate in Taipei’s prime business districts.
Taiwan Life is seeking partners to design and run the hotel and office space, it said.
The shopping mall is to take up half of the floor space planned for the project, which is part of the Taipei City Government’s efforts to create a new business district in Nangang, with high-speed rail services extended to the area, it said.
Taiwan Life president Steve Lin (林欽淼) was upbeat about business potential for the project, as the city government is adding exhibition, conference and recreational space to the area, allowing it to draw more businesspeople and family shoppers.
The project accounts for 14 percent of Taiwan Life’s real-estate stakes and 4 percent of its overall investments, the official said, adding that the company is looking for more targets to digest idle funds.
Taiwan Life has been an active player in the commercial property market in recent years.
In May last year, it bought a mixed-use skyscraper in Kaohsiung that houses the Grand Hi-Lai Hotel (漢來飯店) and Hanshin Department Store (漢神百貨) for NT$16.5 billion, making it the second-largest property deal since 2008.
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