 2015-12-03 |
|
|
To diversify their revenue streams, YC (4306) and Shangyao (1316) have been actively investing in real estate projects in recent years. However, recent measures to curb housing prices have impacted their plans. As a result, both YC and Shangyao are adjusting their business travel plans accordingly.
YC is set to benefit from the profits from its Wangzhou More project by the end of this year. Additionally, YC is renovating a building on Chongqing South Road into a youth hostel, which is expected to open by the end of the year, further enhancing its revenue potential.
Shangyao, focusing on Southern Taiwan, is capitalizing on the trend of weekends and free travel in Taiwan. The company is planning to establish a hotel management company in partnership with its investment in Yongjie (4714). This venture will involve building business hotels in Tainan's Phase 5 and northern districts, with an investment of nearly NT$900 million. The project will consist of 28 business hotels, each 5 stories high with 20 rooms.
This year, YC's asset strategy includes plans to dispose of land and buildings in Linkou District, as well as completing construction projects in Linkou and Xinzhuang under Wangzhou Construction, contributing to revenue for the current and next year.
In addition to its Linkou motor hotel, Yan Chao will be converting its buildings on Chengde Road and Chongqing into business and backpacker accommodations, expanding its service offerings.
Wangzhou Construction, which previously acquired a building at No. 38, Section 3, Chongqing South Road in Zhongzheng District, Taipei for NT$310 million, plans to offer small-scale accommodations for international backpackers due to its proximity to attractions such as the Botanical Garden, National History Museum, Taiwan Art Education Museum, and local schools.
YC's purchased office building on Chengde Road in Shilin will also be converted into the group's first operating base for its Taipei motor hotel.
To implement its asset development strategy in Greater Taipei, YC’s subsidiary Wangzhou Construction invested NT$476.7 million in April to acquire land at No. 57, Sanhe Section, Beitou District, Taipei. The land, totaling 264.83 ping (approximately 873 square meters), will be used for future development projects.
YC Group President Li Zhixian revealed that, considering long-term plans, the company will evaluate opportunities to restart land and building purchases in the Greater Taipei area, focusing on locations near the Taipei Botanical Garden and Shijianxia near Dazhi, with a focus on 2-bedroom and 30-40 ping residential projects. |
|
