Demand for warehouses and logistics facilities has spiked in the past few years, aided by booming online shopping and port congestion amid the COVID-19 pandemic, Colliers International Taiwan (高力國際) said yesterday.
The past three years have seen 22 major transactions of warehouses and logistics facilities valued at NT$29.94 billion (US$1.05 billion) and covering 209,100 ping (690,030m2), the size of 2.3 Daan Forest Parks in Taipei, the property broker said.
Colliers Taiwan managing director Andrew Liu (劉學龍) identified three investment approaches in warehouses and logistics facilities, namely by taking up the role of landlords, service providers and operators.
Photo: Hsu Yi-ping, Taipei Times
Cathay Life Insurance Co (國泰人壽) and Chunghwa Post Co (中華郵政) are landlords to several warehouses and logistics facilities that generate rental incomes equal to 4 percent of annual returns, Liu said.
Ally Logistic Property Co (永聯物流) offers warehousing and logistics solutions for clients in electronics and retail sectors, a business model that provides higher returns than rents, Liu said.
Meanwhile, companies such as food and beverage conglomerate Uni-President Enterprises Corp (統一企業), supermarket chain operator PX Mart Co Ltd (全聯實業) and e-commerce operator Momo.com Inc (富邦媒體) buy plots and build their own warehouses and logistics facilities to meet operational needs, Liu said, adding that their business scales are large and their pockets deep enough to warrant such a strategy.
Most warehousing deals are concentrated in Taoyuan’s Guanyin (觀音), Gueishan (龜山), Dasi (大溪) and Lujhu (蘆竹) districts; New Taipei City’s Wugu District (五股); Keelung; and Hsinchu’s Hukou Township (湖口), Collier Taiwan said.
Solid demand has pushed up industrial plot prices by 40 percent since 2018, the broker said.
Warehouses and logistics facilities are sparse in Taichung, Tainan and Kaohsiung, as well as Changhua County, but their numbers might increase in central and southern Taiwan in the coming years on the back of emerging industrial clusters and land scarcity in the north, Collier Taiwan said.
Industrial plots of more than 10,000 ping and near highway entrances are ideal sites for warehouses and logistics facilities, it said.
Apart from Cathay Life, Nan Shan Life Insurance Co (南山人壽) and Transglobe Life Insurance Co (全球人壽) also have displayed investment interest in warehouses and logistics facilities, it said.
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
UNCERTAINTIES: The world’s biggest chip packager and tester is closely monitoring the US’ tariff policy before making any capacity adjustments, a company official said ASE Technology Holding Inc (日月光投控), the world’s biggest chip packager and tester, yesterday said it is cautiously evaluating new advanced packaging capacity expansion in the US in response to customers’ requests amid uncertainties about the US’ tariff policy. Compared with its semiconductor peers, ASE has been relatively prudent about building new capacity in the US. However, the company is adjusting its global manufacturing footprint expansion after US President Donald Trump announced “reciprocal” tariffs in April, and new import duties targeting semiconductors and other items that are vital to national security. ASE subsidiary Siliconware Precision Industries Co (SPIL, 矽品精密) is participating in Nvidia
RSS