The nation’s top insurer was the winner in yesterday’s auction of two floors in a Grade A office building in Taipei.
Cathay Life Insurance Co (國泰人壽), a subsidiary of Cathay Financial Holding Co (國泰金控), acquired the 6th and 7th floors of the Taipei Financial Center building (台北金融中心) for NT$1.58 billion (US$53.7 million), 6.5 percent higher than the asking price, said auction organizer DTZ (戴德梁行), an international real estate service provider.
The move marked the insurer’s second real-estate portfolio expansion this month after it won in the bidding for the 13th and 14th floors of the same building on Jan. 11.
The latest bid, measuring 1,178 ping (3,887m2) in the newly revamped building on Dunhua N Road near Taipei Songshan Airport, translates into NT$1.28 million per ping, compared with NT$1.36 million per ping for the previous auction.
Eagle Lai (賴一毅), an associate manager at DTZ, said that the price was lower because the property was located on the lower floors of the building.
Lai refused to reveal the number of bidders, but said more than 10 firms, including major domestic life insurance companies, collected bidding documents.
The outcome of the auction reaffirmed strong demand for commercial property in prime locations as liquidity remains high and capital costs are low, a real estate analyst said.
Howard Ou (歐人彰), vice president of asset management at Sinyi Realty Co (信義房屋), said three auctions had already been held for the building’s primeholdings, attracting total investment of NT$5.07 billion, or more than NT$1 million per ping.
“The results lend support to a bullish Grade A office market this year, with rental rates finally emerging from the shadow of the global financial crisis,” Ou said by telephone.
Real rental rates for the building hover between NT$2,500 and NT$3,000 per ping, about the same for Grade A office buldings in Xinyi District (信義), due to its proximity to the airport and the mass rapid transit system, Ou said.
The building currently houses the Taipei office of the Hong Kong-based Bank of East Asia (東亞銀行) and China Ocean Shipping Group (中國遠洋集團).
Cathay Life, which holds a 40 percent stake in the building, could earn a 2.6 percent return on its newest investment, Ou said.
Cathay Life issued a statement later yesterday estimating its return on investment at 3 percent.
Yuanta Financial Holding Co (元大金控), whose subsidiaries were the owner of the 6th and 7th floors, which come with 19 parking spaces valued at NT$3.5 million each, could add NT$0.1 to its earnings per share this year.
The Eurovision Song Contest has seen a surge in punter interest at the bookmakers, becoming a major betting event, experts said ahead of last night’s giant glamfest in Basel. “Eurovision has quietly become one of the biggest betting events of the year,” said Tomi Huttunen, senior manager of the Online Computer Finland (OCS) betting and casino platform. Betting sites have long been used to gauge which way voters might be leaning ahead of the world’s biggest televised live music event. However, bookmakers highlight a huge increase in engagement in recent years — and this year in particular. “We’ve already passed 2023’s total activity and
Nvidia Corp CEO Jensen Huang (黃仁勳) today announced that his company has selected "Beitou Shilin" in Taipei for its new Taiwan office, called Nvidia Constellation, putting an end to months of speculation. Industry sources have said that the tech giant has been eyeing the Beitou Shilin Science Park as the site of its new overseas headquarters, and speculated that the new headquarters would be built on two plots of land designated as "T17" and "T18," which span 3.89 hectares in the park. "I think it's time for us to reveal one of the largest products we've ever built," Huang said near the
China yesterday announced anti-dumping duties as high as 74.9 percent on imports of polyoxymethylene (POM) copolymers, a type of engineering plastic, from Taiwan, the US, the EU and Japan. The Chinese Ministry of Commerce’s findings conclude a probe launched in May last year, shortly after the US sharply increased tariffs on Chinese electric vehicles, computer chips and other imports. POM copolymers can partially replace metals such as copper and zinc, and have various applications, including in auto parts, electronics and medical equipment, the Chinese ministry has said. In January, it said initial investigations had determined that dumping was taking place, and implemented preliminary
Intel Corp yesterday reinforced its determination to strengthen its partnerships with Taiwan’s ecosystem partners including original-electronic-manufacturing (OEM) companies such as Hon Hai Precision Industry Co (鴻海精密) and chipmaker United Microelectronics Corp (UMC, 聯電). “Tonight marks a new beginning. We renew our new partnership with Taiwan ecosystem,” Intel new chief executive officer Tan Lip-bu (陳立武) said at a dinner with representatives from the company’s local partners, celebrating the 40th anniversary of the US chip giant’s presence in Taiwan. Tan took the reins at Intel six weeks ago aiming to reform the chipmaker and revive its past glory. This is the first time Tan
RSS