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.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Standard Chartered Taiwan on March 26 announced that it has partnered with international fintech firm FinIQ to build an “Automated Structured Products Pricing Platform.” The bank is also introducing products from global issuers including Goldman Sachs Group Inc, Barclays PLC and BNP Paribas SA. The new platform enables an end-to-end process whereby it finds the most competitive pricing across multiple issuers in a matter of minutes, followed by automated documentation and transaction execution, which significantly shortens time-to-market and delivers a superior wealth management experience. Standard Chartered Bank Taiwan CEO Anthony Yu (游天立) said: “Standard Chartered is increasingly leveraging its wealth management
RSS