Shin Kong Life Insurance Co (新光人壽) on Tuesday won a bid for the China Development Financial Holding Corp (中華開發金控) headquarters with an offer of NT$9.28 billion (US$326.24 million), beating a bid by China Life Insurance Co (中國人壽).
The life insurance arm of Shin Kong Financial Holding Co (新光金控) would use the building — on Nanjing E Road in Taipei’s Songshan District (松山) — as office space for its own use for the first five years, Shin Kong Financial spokesperson Sunny Hsu (徐順鋆) said by telephone yesterday.
The building would accommodate its employees or those of its affiliates, such as Shinkong Insurance Co (新光產險) and Shinkong Synthetic Fibers Corp (新光合成纖維), as those subsidiaries’ buildings are to be rebuilt over the next few years, Hsu said.
Photo courtesy of Cushman & Wakefield Taiwan
“The 35-year-old building is not unsafe or old, but after five years, we would consider rebuilding it via urban renewal and building a new commercial venue to earn stable rental income,” Hsu said.
With the incentives for urban renewal, Shin Kong Life expects to build a 19-story building with a total floor area of 9,700 ping (32,066m2) compared with the current 16-story building’s 8,000 ping, he said.
A preliminary estimate indicates that the new building would generate a higher rate of return than the regulatory minimum, Hsu said.
Shin Kong Life, which owns six buildings along Nanjing W and Nanjing E roads in Datong (大同), Zhongshan (中山) and Songshan districts, expects demand for office space in the area to gain momentum, Hsu said.
The company aims to revitalize its other 190 buildings this year, he said.
It would talk with China Development Financial to decide a timeframe for handing over the building, as its employees still work in the building while the firm’s new headquarters is being finished, he said.
China Development Financial, the parent company of the building’s owner, CDIB Capital Group (中華開發資本), would recognize disposal gains of NT$8 billion from the deal, China Development Financial said in a filing on Tuesday.
“We could not fully recognize the NT$9.28 billion, as we needed to subtract the building’s construction costs from the bid price,” China Development Financial spokesman Richard Chang (張立筌) said by telephone.
It would recognize the disposal gains when receiving the payments, while Shin Kong Life would pay in four installments, Chang said.
The proceeds from the auction would not be used to acquire a greater stake of China Life Insurance via a public tender offer, Chang said, referencing a Financial Supervisory Commission order, adding that they would boost China Development Financial’s return on equity.
Taiwan and China are to build more new high-volume semiconductor fabrication plants this year and next year than any other country, together contributing more than half of all new fabs in the world by constructing eight each, SEMI said in a quarterly report yesterday. Global chipmakers are to start building 19 new high-volume fabs by the end of this year and another 10 next year to meet accelerating demand for chips from the communications, computing, healthcare, online services and automotive sectors, SEMI, an association that represents the global semiconductor sector, said in its quarterly report. “Equipment spending for these 29 fabs is
Major PC vendors expect a shortage of key components to last another 12 months until the second quarter of next year, when PC demand wanes after two years of robust expansion, a UBS analyst said yesterday. Concern has risen among investors that PC demand could weaken as the US and European economies reopen from COVID-19 lockdowns and gradually return to in-person business activities. At the annual Taiwan Conference that began on Monday, UBS analysts said they had similar discussions with companies in PC supply chains, and the feedback from major PC vendors indicated that demand remained quite strong on the back of
MOVING ON UP: Taiwan improved in all four areas measured by the IMD, making its biggest leap, from 17th to sixth place, in economic performance Taiwan moved up three spots from last year to place eighth, its best performance since 2013, in the latest annual world competitiveness rankings, released yesterday by the International Institute for Management Development (IMD). Innovation, digitalization, welfare benefits and social cohesion are critical to economic performance, with Switzerland, Sweden, Denmark, the Netherlands and Singapore making up the top five on the list this year, the Switzerland-based institute said, after grading 64 countries and regions based on economic performance, infrastructure, and government and business efficiency. “Leading performers are characterized by varying degrees of investment in innovation, diversified economic activities and supportive public policy,” IMD
‘MATTER OF SURVIVAL’: Vice Premier Liu He is to lead the development of ‘third-generation’ chips, a field not yet dominated by any nation or company Chinese President Xi Jinping (習近平) is renewing his years-long push to achieve technology self-sufficiency by tapping a top deputy to shepherd a key initiative aimed at helping domestic chipmakers overcome US sanctions. Chinese Vice Premier Liu He (劉鶴), Xi’s economic czar whose sprawling portfolio spans trade to finance and technology, has been tapped to spearhead the development of so-called “third-generation” chip development and capabilities, and is leading the formulation of a series of financial and policy supports for the technology, people with knowledge of the matter said. It is a nascent field that relies on newer materials and gear beyond traditional silicon,