Contract computer maker Clevo Co (藍天電腦) and property affiliate Hongwell Group (宏匯集團) yesterday shed more light on plans for a multibillion-dollar development project, saying they expect it to generate annual returns of 5 to 8 percent, better than interest income from bank deposits.
The local consortium is competing against a foreign team — consisting of Hong Kong’s Nan Hai Corp (南海控股) and Malaysian property developer Pavilion Group (柏威年集團) — for the Taipei Twin Towers development project near Taipei Railway Station.
Both contenders have passed qualification reviews, the Taipei City Government said in a statement on Tuesday, as many have raised concern over Chinese capital hiding behind either team.
Local insurers and developers, while expressing interest, have stayed away for fear of resistance from a few small private landowners, a problem that has plagued several urban renewal projects.
The city government said it would announce the winner by the end of this month after failing to auction the contract over the past 20 years.
Clevo chairman Kent Hsu (許崑泰) said his team intends to build a mixed-use complex featuring two towers of 56 and 76 stories that would house retail stores, movie theaters, office space, restaurants, hotel rooms and an observatory on the rooftop.
Office space would take up 63.84 percent of total floor space, while retail stores and hotel rooms would occupy the remaining 23.48 percent and 12.68 percent respectively, the team said.
International property broker Jones Lang LaSalle Inc (JLL) has said it plans to move its office in Taipei 101 to the new complex to take advantage of its proximity to the railway, high speed rail and MRT stations.
Hsu, who owns Chicony Electronics Co (群光電子) and the China-based Buynow (百腦匯) retail chain, said the development project would cost NT$60.6 billion (US$1.97 billion) and could be completed in four to six years.
The venture could start to generate a profit after nine to 10 years and recover the cost in 20 to 30 years, Hsu said.
“We have a long-term view for the project, which would be an environmentally friendly landmark in the region,” Hsu said.
The group has experience in joint ventures with the government, as it is responsible for three such projects in Taipei’s Neihu District (內湖) and New Taipei City’s Sinjhuang District (新莊).
The team would collaborate with US architecture and engineering firm Skidmore, Owings & Merrill LLP to build the complex and invite Hyatt Hotels Corp to run the hotel, Hsu said.
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