The nation’s land market remains strong and could see record trading this quarter if an auction for superfices rights to regenerate the Taipei World Trade Center’s Exhibition Hall 3 secures a buyer next week, analysts said.
The Ministry of Finance is to go ahead with the auction on Monday for a 70-year superfices rights lease to redevelop the 17-year-old hall next to Taipei 101 in the city’s Xinyi District (信義).
The ministry has set a floor price of NT$26.64 billion (US$878.74 million) for the 4,856 ping (16,053m2) plot, which can be developed into a mixed-use complex featuring upscale office space.
The auction could raise land transactions above NT$70 billion this quarter after major deals have so far totaled NT$47.8 billion, international property consultancy Savills Taiwan Ltd (第一太平戴維斯) research manager Erin Ting (丁玟甄) said.
Domestic life insurers would be among prospective buyers given their deeper pockets, Ting said.
Regular rental income that would be created by the project would also attract bidders, she said, adding that monthly rent for new grade-A office space would be NT$4,000 per ping.
“The amount would be acceptable in light of low vacancy rates and a lack of new supply on the horizon,” Ting said.
The auction is drawing attention, as it comes at a time when the COVID-19 outbreak in Taiwan and abroad is dampening confidence in all business sectors.
Knight Frank Taiwan researcher Andy Huang (黃舒衛) said that domestic insurers are unlikely to sit out auctions for investment targets in Taipei’s central business districts.
Superfices rights auctions for properties in popular locations have over the past few years witnessed intense competition, as they proved profitable investments thanks to robust demand for Grade-A offices, Huang said.
However, similar investment opportunities in Kaohsiung failed to attract any bidders last month, driving Taichung authorities to put off auctions for plots of land intended for a financial complex in central Taiwan.
Huang said that the size of the vast plots in Taichung and Kaohsiung raised uncertainty about their profitability outlook, which he said is not the case in Xinyi District.
The exhibition hall is close to MRT stations, department stores, restaurants, and the headquarters of Taiwan’s top financial and technology companies.
Nevertheless, the high asking price would limit the number of participants and the outbreak could dim the chance of generous premiums, Huang said.
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,
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
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees
GOGOROS TO GO: The scooter maker’s CEO said that the electric vehicles ‘are the perfect complement to a program designed to stimulate the Taiwanese economy’ Minister of Economic Affairs Wang Mei-hua (王美花) yesterday announced a draw to encourage people to claim their Triple Stimulus Vouchers digitally. The prizes include movie tickets and 25 electric scooters donated by Gogoro Inc (睿能創意), Wang said. The Ministry of Economic Affairs said that it would hold a scooter draw every day for the next 10 days, beginning yesterday, after which there would be a draw every week for 15 weeks. The first winner was a Taiwan Cooperative Bank (合庫銀行) credit card user, the ministry said. The benefits of claiming the vouchers digitally extend beyond the draws, with many businesses offering special deals for