By Crystal Hsu / Staff reporter
China Life Insurance Co (中國人壽) yesterday acquired an office building in Taichung for NT$12.05 billion (US$434.75 million), the first time a single property deal has exceeded NT$10 billion in the municipality, Knight Frank Taiwan said yesterday.
The six-year-old office building near Taichung City Hall has 23,500 ping (77,686m2) of upscale office space, with 38 floors above ground and seven basement floors, the consultancy said.
“It is the first time that Taichung has seen a property deal of more than NT$10 billion, as the municipality is growing into a popular investment destination, thanks to improving infrastructure, among other considerations,” Knight Frank Taiwan said.
China Life was attracted by Taichung’s growing demand for upscale offices, especially in its central business districts, it said.
Taichung is already home to major makers of flat panels, camera lenses, machinery equipment, bicycles and shoes, and Taiwan Semiconductor Manufacturing Co (台積電) is reportedly considering building plants there for its next-generation technology processes, it said.
Currently, more than 25 percent of the building’s tenants are from the technology sector, while others are in the financial services or consultancy sectors, Knight Frank Taiwan said.
The investment would prove worthwhile as industrial clusters spur demand for offices, it said.
The ongoing realignment of the global supply chain and the government’s Invest in Taiwan initiative are lending support to property fund flows to central and southern Taiwan, it added.
There is a shortage of upscale office space in Taipei, explaining why vacancy rates have dropped to historic lows in the Xinyi (信義), Neihu (內湖) and Nangang (南港) districts, as well as the Dunhua (敦化) area, Knight Frank Taiwan said.
The record-high deal showed that institutional investors are turning their attention to central Taiwan due to Taipei’s lack of land, it said.
source: Taipei Times