Cathay United Bank (國泰世華銀行), the banking arm of Cathay Financial Holding Co (國泰金控), set a floor price for its collateral office building on Zhongshan N Road in Taipei that was so high it scared away bidders at yesterday’s auction, local realtors said yesterday.
“A 20 percent discount should be knocked off its asking price” of NT$1.5 billion (US$46 million) for the 11-story building, Jeffrey Huang (黃增福), an assistant manager at Evertrust Rehouse Co’s (永慶房屋) research and development department, said over the phone yesterday.
Jhally Chiu, chief executive of the research department at Taiwan Realty Co (台灣房屋), also said that a reasonable price range for the 37-year-old building should fall between NT$1.2 billion and NT$1.3 billion.
Chiu and Huang agreed that location was another reason that the building had attracted no interested bidders yesterday since it is not situated in a major business district.
Chiu said the building, which sits on a 294-ping (971m²) plot of land with total floor space of approximately 2,610 ping, will have a land price of NT$5.09 million per ping or a floor price of NT$574,600 per ping if it closed at NT$1.5 billion.
These values are 20 percent higher than the average floor price of between NT$420,000 and NT$460,000 per ping in the neighborhood.
The property will be of greater potential if the neighboring K Hotel (柯達飯店) can also be acquired to free up more space for a new luxury housing project, he said.
With a land price of more than NT$5 million per ping, potential buyers could afford to acquire commercial properties in business districts in more traditional locations such as the Nanjing E Rd business district or the business district at the intersection between Minsheng E Road and Dunhua N Rd, Huang said.
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to