Chinatrust's old HQ sold for NT$15.1 bil.
By Christine Chou ,The China Post
October 31, 2015, 12:22 am TWN
TAIPEI, Taiwan -- Chinatrust Financial Holding Company (中國信託) announced yesterday the decision to sell its old office building to Green Heaven Investments Limited (BVI) and Sho-he Development Company (SH, 碩河開發) for approximately NT$15.1 billion, gaining more than NT$7 billion from the sale, according to industry experts.
Located in a key location in Xinyi District, Taipei City's commercial hub, Chinatrust's former headquarters has faced difficulty in finding bidders for more than a year. This year, China trust cut back its price, with the lowest offer dropping by NT$5 billion.
Industry watchers speculated that the sale was caught in a deadlock because of the conditions Chinatrust demanded. Among which were that Chinatrust would continue to hold 5 percent of the building's ownership, that a stage should be built with the exact same design as before, that an art space should be built and that future owners should follow the same conditions.
SH is to own 95 percent of the property, with the building registered under its name. The remaining 5 percent remains in the hands of Chinatrust — a strategic move "taking into consideration long-term business plans and (the building's) iconic value for our corporate image," stated the company.
According to Chinatrust, the group and SH will jointly tear down the old headquarters and construct a new building on the same spot.
Industry experts forecast that if the sale is finalized in the fourth quarter, it will likely boost annual revenue for Chinatrust this financial year, and help it jump ahead of Megabank (兆豐銀行) to become Taiwan's third biggest bank by profit gains.
Continental Holdings Corporation (欣陸控股公司), based in mainland China, is the parent company of SH and Green Heaven Investments Limited (BVI).