Fri, Jul 20, 2012 - Page 1 News List

Nan Shan Life pays NT$26.8 billion for Xinyi District lease

By Mo Yan-chih  /  Staff reporter

The Taipei City Government yesterday leased one of its most valuable properties in Xinyi District (信義) to Nan Shan Life Insurance Co (南山人壽) for a record royalty of NT$26.8 billion (US$894 million), with a new landmark building expected to rise in the business district in three years.

Bidding for the 5,357 ping (17,709m2) property, which houses the Taipei World Trade Center’s Hall 2, is a key project for the city government to speed up urban renewal and generate revenue.

The starting bid for the property was NT$25 billion and Nan Shan, by paying NT$1.8 billion over the starting price, obtained the leasehold to the property for 50 years.

Nan Shan beat out Cathay Life Insurance Co (國泰人壽), which bid NT$25.6 billion.

Announcing the result, Department of Finance Commissioner Chiu Da-chan (邱大展) said the city expected the new building to become another landmark alongside Taipei 101, and that both Nan Shan and its competitor Cathay had invited world-renowned design teams to participate in the bidding process.

Taipei Mayor Hau Lung-bin (郝龍斌) thanked the two bidders for their participation and said he expected the project would create stable revenue and more job opportunities, in addition to a more beautiful landscape.

“The project is expected to attract NT$40 billion in private investment and create 9,200 jobs. The city government will also receive a monthly rent of NT$220 million. I think it’s a win-win situation for private investors and city residents,” Hau said at Taipei City Hall.

Nan Shan plans to work with Mitsubishi Estate, architect of the Omotesando in Tokyo, and Jones Lang LaSalle, a former leasing agent for Taipei 101, to construct new buildings with towers of 28 stories and 36 stories.

The company is expected to complete the construction in three years, Chiu said.

The city government plans to sign a contract with the company in the next three months and it would receive half of the royalty, or NT$13.4 billion, upon signing.

The Department of Finance is planning another auction — for the city’s remaining property in Xinyi District on Zhongxiao E Road — next month, Chiu said.

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