 2014-02-26 |
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Industrial and Commercial Times [Reporter Peng Xuanyi / Taipei Report]
YC (4306) announced that its subsidiary Wan Chao Construction has purchased a building located at No. 38, Section 3, Chongqing South Road, Zhongzheng District, Taipei City from the Pacific Cultural Foundation for a total price of NT$310 million. The building currently generates rental income and is located near the Botanical Garden, National Museum of History, Taiwan Arts Education Center, and prestigious schools such as Jianguo High School, Taipei First Girls' High School, and National Language Experimental Elementary School. After the current leases expire, there is a possibility of redeveloping the building into small residential units for sale.
YC's real estate strategy is expanding from Linkou and New Taipei City to the core area of Taipei. The company recently purchased a commercial office building on Chengde Road, Shilin, and is considering redeveloping it into the group's first automobile motel operation in Taipei after the current leases expire.
To increase profit sources, YC invested NT$920 million to acquire an entire office building near Bailin Bridge in Taipei from Xin Xian. The building is currently fully leased, mainly to financial institutions, with lease agreements set to expire around 2015 to 2016. The property will belong to YC Group starting in February 2014.
In recent years, Wan Chao Construction has been actively acquiring land in Greater Taipei and launching residential projects. In 2014, the company is expected to recognize revenue from the "More" project, which focuses on small-sized units, with a total of NT$1 billion. The "Wan Chao Ultimate" project launched in Linkou in 2013 has 200 units with total sales exceeding NT$5 billion. The market response has been positive, adding to the revenue potential for 2015.
Wan Chao Construction’s upcoming projects will target first-time homebuyers and those looking to upgrade their homes. In 2015, the company plans to launch new projects in Xin-Zhuang sub-central and the second phase of Linkou. The Xin-Zhuang sub-central Phase II project will cover approximately 900 ping and will plan for 30-40 ping residential units, while the Linkou Phase II project will cover 700 ping with similar residential unit sizes. The acquisition of land in Taipei City further supports long-term project planning.
YC Group holds over 1,800 ping of land in Neihu Phase V, Tanjin section. After selling 738 ping, the group retains nearly 1,100 ping of land for its future headquarters. Additionally, Wan Chao Construction currently has two parcels of land totaling 1,300 ping in Xin-Zhuang sub-central and 700 ping in Linkou. |
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