Local blue chip firms to roll out numerous properties next year
Local blue chip companies have been investing in real estate over the years, and they are expected to roll out NT$150 billion worth of properties onto the market next year, My Housing ( ) magazine predicted.
Non-construction firms in Taiwan acquired large quantities of land, and they are currently engaging in property development in an effort to revitalize their assets.
My Housing predicted that blue chip firms will carry out a total of 11 real estate developments worth NT$150 billion in 2015.
Chunghwa Telecom (CHT, ), the largest telecom company in Taiwan, has a green construction project in Taoyuan City. Although it is not considered a flagship project, Chunghwa’s prestige still carries weight. The telecom’s subsidiary Light Era Development Co. (
) has constructed properties in Banqiao District, New Taipei City before.
Taiwan Fertilizer Co. ( ) also has a number of properties in its portfolio. A major landowner in Taipei’s Nangang District, the company has several high-profile property developments in the area.
Taiwan Fertilizer will put two pieces of land on the market next year. It plans to sell the land ownership rights of the one and erect two hotels and one commercial building on the other. In addition, the company will construct another office building in Hsinchu.
Turning Old Factories into New
Many of these blue chip companies’ new properties are converted from their old factories, said My Housing business research manager He Shichang ( ). World Pearl ( ) is one example.
The high-profile development in Nan- gang was converted from an old Nankang Rubber Tire Corp. ( ) factory. The property is valued at upwards of NT$40 billion.
The T.CBD development, located in Taipei, was converted from a Sanyang Industry Co. ( ) factory and sold for some NT$32 billion in total. It is one of the largest commercial developments in Northern Taiwan in recent years.
Chia Hsin Cement Corp. ( ) has also long dabbled in the real estate industry and has put properties in Taipei and Taoyuan. Analysts predict that the company will introduce a new property in Daan District, one of the most expensive districts in Taipei. Unit price is expected to exceed one million.
My Housing forecast that other local big names such as Sampo ( ), Formosa Plastics Group ( ) and HeySong Corporation ( ) will follow suit in the future, generating high property volumes on the market.