Taipei Living Mall is for sale
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The Taipei Living Mall retail complex is up for sale for NT$38 billion (US$1.23 billion).
The mall’s owners, Core Pacific City, have described the project “a failure”. It was constructed on a syndicated loan of NT$12 billion two decades ago, and the debt is timed to mature next year. The 16,483sqm plot it stands on could potentially yield higher returns if converted to luxury rental properties.
Taipei Living Mall is the largest private property made available for sale in decades. Cushman & Wakefield Taiwan GM Billy Yen commented: “It is not the best timing to sell properties these days, so I recommended a price concession and the owner accepted it.” The property could attract a significantly higher price in a boom market.
Investors from Singapore, Hong Kong and China have submitted expressions of interest in the asset.
Questions & Answers
Q.Why are Core Pacific City selling the Taipei Living Mall now?
Why are Core Pacific City selling the Taipei Living Mall now?
The owners describe the project as a failure, and a syndicated loan of NT$12 billion used for its construction two decades ago is due to mature next year. Selling could address this debt and the property's underperformance.
Q.What is the potential alternative use for the Taipei Living Mall site?
What is the potential alternative use for the Taipei Living Mall site?
The 16,483 square metre plot of land the mall occupies could potentially offer higher returns if it were to be redeveloped into luxury rental properties. This conversion might attract different investors.
Q.Why was the selling price potentially lower than its true value?
Why was the selling price potentially lower than its true value?
According to Cushman & Wakefield Taiwan GM Billy Yen, current market conditions are not ideal for selling properties. He recommended a price concession, which the owner accepted, implying it could attract more in a boom market.
Q.Which regions have shown interest in purchasing the property?
Which regions have shown interest in purchasing the property?
Investors from Singapore, Hong Kong, and China have submitted expressions of interest in the Taipei Living Mall. This indicates international attention despite the challenging market conditions for selling properties.