The Ministry of Finance (MOF) yesterday signed a landmark agreement with Huaku Development Co (華固建設), which won the 70-year lease superficies rights to a plot of state-owned land in Taipei’s Jingmei District (景美) for development into a housing complex.
The project — which will include two buildings for the ministry’s use, as well as a commercial building and four residential buildings — is scheduled for completion in 2018.
“It is a benchmark case for the ministry’s initiative to revitalize large-scale state-owned land that are underutilized,” Minister of Finance Chang Sheng-ford (張盛和) said during the signing ceremony.
The success of this project may increase the opportunities for the ministry’s land revitalization plan, Chang added.
Huaku won the auction of the land development project last month. There were three other bidders — Nan Shan Life Insurance Co (南山人壽), Kindom Construction Corp (冠德建設) and Prince Housing & Development Corp (太子建設).
The project had earlier failed to attract any bidders for the three auctions held since April last year, forcing the ministry to increase the incentives, such as extending the superficies rights from 50 years to 70 years and cutting the rental rate and floor space reserved for the ministry.
The project’s superficies rights has generated a one-time fee of NT$1.39 billion (US$46.29 million) for the national coffers, with further rental income expected to stand at NT$31 million per year, the ministry said.
Furthermore, the ministry could keep the ownership of the land under this kind of cooperation and reclaim the land after the 70-year contract expires.
Huaku chairman Chung Jung-chang (鍾榮昌) said the base of this project is a square plot of land, appropriate for either commercial or residential development.
The project covers a plot of state-owned land of more than 10,000 ping (33,000m2) on Roosevelt Road between Wanlong MRT Station and Jingmei MRT Station.
Chung said the company aimed to enter the fair-price market with this land development project, by setting the price level at about 60 percent of market price.
Under the company’s plan, a apartment on the lower floors would cost about NT$300,000 per ping, with those on the higher floors would be set at about NT$400,000 per ping.
The company plans to build four residential buildings with 20 floors and a total of 600 housing units.