Synnex Technology International Corp (聯強國際) yesterday inked a deal to buy office space from Nankang Rubber Tire Corp (南港輪胎), which is turning an old factory site in Taipei’s Nangang District (南港) into an upscale mixed-use complex.
The electronics distributor, its affiliate Winbond Electronics Corp (華邦電) and Y. S. Educational Foundation (育秀教育基金會) have agreed to buy 15 floors for NT$6.36 billion (US$205.15 million), or NT$1 million per ping (3.3m2), in the Global One (世界明珠) complex.
The deal pushed commercial property prices to a new high in a district that might see a massive influx of corporate tenants in the next five years, as office space in the prime Xinyi District (信義) is approaching full occupancy without signs of new supply in sight, market watchers said.
Photo: Yang Ya-min, Taipei Times
Synnex Technology’s deal comes before Nankang Rubber has even officially launched the Global One project, which is expected to see a sales volume of about NT$100 billion, real-estate brokers said.
Synnex Technology president Evans Tu (杜書伍) said the company would put its global operation center in the new offices, after the new complex is completed in 2023, ending five years of searching for a site.
The complex is to be built on a 10,000-plus ping plot, with two office buildings and six residential buildings with floor space totaling 70,000 ping, Nankang Rubber said.
“The complex, close to Nangang High Speed Rail Station, will become a new landmark all occupants could be proud of,” said former Nankang Rubber chairman Lin Hsueh-pu (林學圃), who remains honorary chairman of the company.
The tire maker would move its own headquarters there, he added.
The complex is to include 6.7 percent retail space and 1.7 percent for a performing arts space, said Jay San Lin Group (甲山林機構), which is marketing the project.
Jay San Lin said it plans to set up a sales center toward the end of the year, but not formally introduce the project until after the Jan. 11 presidential and legislative elections to avoid political uncertainty hurting sales.
Selling prices for residential apartments could be NT$1.5 million per ping in light of the location, real-estate brokers said.
Synnex Technology, known in recent years for its astute acquisition and merger program, would not spend money on unworthy assets, brokers said.
Synnex shares yesterday rose 1.23 percent in Taipei trading to close at NT$36.9, while Nankang’s shares gained 1.21 percent to end at NT$41.95.
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